Simple English definitions for legal terms
Read a random definition: penitentiary
A clearinghouse is a place where banks exchange checks and settle their daily balances. It's like a big club where banks go to make sure they have enough money to cover all the checks they've received. It's also a place where brokers go to clear their daily transactions on the stock and commodity exchange. Finally, it can be any place where people exchange specialized information.
A clearinghouse is a place where banks or other payors exchange checks and drafts and settle their daily balances. It can also refer to a stock-and-commodity exchange where brokers' daily transactions are cleared. Additionally, it can be any place for the exchange of specialized information.
These examples illustrate how a clearinghouse can be used in different contexts to facilitate the exchange and settlement of information or transactions between parties.