Legal Definitions - here and there

Term: Here and There

In financial and banking contexts, the phrase "here and there" is sometimes used informally to refer to the concept of a Value Date. A Value Date is the specific calendar date on which a financial transaction is considered effective for the purpose of calculating interest, making funds available, or settling payments. It is not always the same as the date a transaction was initiated or recorded, as there can be processing delays or agreements that dictate a different effective date.

Here are some examples illustrating the concept of a Value Date:

• Example 1: International Wire Transfer

  A small business owner in New York sends a wire transfer of $10,000 to a supplier in London on Monday, October 23rd. Due to international banking protocols and time differences, the funds are not actually credited to the supplier's account and available for use until Wednesday, October 25th. In this scenario, October 23rd is the transaction initiation date, but October 25th is the Value Date, as that is when the funds become effective for the recipient.

• Example 2: Interest Calculation on a Savings Account

  Sarah deposits a check for $500 into her savings account on Friday, November 10th. Her bank's policy states that funds from check deposits have a two-business-day hold before they start earning interest. Therefore, while the deposit is recorded on November 10th, the Value Date for interest calculation purposes is Tuesday, November 14th (Monday being the first business day, Tuesday the second). Interest on that $500 will only begin accruing from November 14th.

• Example 3: Loan Repayment Schedule

  A company takes out a business loan with monthly repayments due on the 1st of each month. If the company makes a payment on the 28th of the previous month, the bank might still consider the Value Date for that payment to be the 1st of the next month for interest calculation purposes, especially if the payment is for the upcoming period. Conversely, if a payment is made late on the 3rd, the bank might backdate the Value Date to the 1st but apply late fees, or treat the 3rd as the actual value date for interest calculation, depending on the loan agreement terms.