joint and several

A legal expression used to indicate that two or more parties each are fully liable rather than together fully liable. For example, if two individuals execute joint and several guaranties, either one can be asked to repay the entire amount of the guaranteed debt.

judgment

A sum due for payment or collection as a result of a court order.

judgment clause

A provision in bank promissory notes or guaranties. In this clause, the borrowers or guarantors authorize the bank to create a judgment lien at any time after the documents have been executed. The bank only has to take the documents to a court. Many states prohibit judgment clauses.

judgment lien

See judicial lien.

judicial lien

An interest in property acquired from a judicial or court proceeding. A judicial lien is usually the result of a judgment that a winning party of a lawsuit receives in the form of a court order. See consensual lien and statutory lien for alternative types of liens.

jumbo CDs

An informal name for certificates of deposit of $100,000 or larger. In order to include accrued interest within the $100,000 federal deposit insurance coverage, some banks issue $98,000 jumbo CDs.

jump Z tranche

A Z tranche in a real estate mortgage investment conduit (REMIC) that is permitted to receive principal payments before prior tranches are retired.

junior creditor

A creditor holding junior debt.

junior debt

Obligations of an issuer for which repayment has contractually been given a priority that is lower than the repayment priority of other debts of the same obligor. This arrangement may arise from either a specific subordination agreement or a public issuance of subordinated debt instruments.

junior subordinated notes

See equity tranche.

junk bonds

An informal name for high-yield securities with quality ratings below investment grade (i.e., rated lower than Baa).