Cap in United Kingdom

Definition of Cap

In accordance with the work A Dictionary of Law, this is a description of Cap : (Common Agricultural Policy, CAP)

The agricultural policy of the EU as set out in Articles 32-38 of the Treaty of Rome. The overall aims of the CAP are to increase agricultural productivity, ensure a fair standard of living for the agricultural community, stabilize markets, assure the availability of supplies, and ensure that supplies reach consumers at a reasonable price. The Treaty is supplemented by a wide range of EU directives in this field.

See also intervention.

Meaning of Cap

The following is an old definition of Cap [1]: When a person, who has been sentenced to capital punishment by hanging, is about to be executed, it is customary to place over his head and neck a sack or bag, which, from the color of the material, is called the white cap or black cap, and, generally, the ” death cap.” In England and Canada, when a judge formally passes sentence of death upon a prisoner, he usually wears a “black cap.” Some writers trace the practice to the ancient custom by which rulers covered the head on occasions of great solemnity; while other writers find its origin in a prohibition against persons m holy orders (from which class the judges were largely selected) imposing the death penalty -as officials of the church. Since it was obligatory that such sentences should be pronounced, the judges on such occasions, were supposed to lay aside their ecclesiastical character by “covering the clerical tonsure ” with the black cap which all judges in early days wore as a part of their official dress.

Cap in the Context of Mortgages

A limit on the amount the interest rate or monthly payment can increase in an adjustable rate mortgage.

Similar Terms

Cap & collar mortgage

Cap & collar mortgage

This is a mortgage that has both a top and bottom limit set for the interest rate. It is a very safe and risk free type of mortgage, as you are protected against intetrest rate rises above a certain point, but you are losing some of the potential gains if interest rates drop.

Capital

Capital

In the context of mortgages, capital describes the original sum borrowed as distinct from interest required on that loan. A repayment mortgage involves repayment of a little of the capital interest each month.

Capital appreciation or depreciation

Capital appreciation or depreciation

The increase or decrease in the value of the individual’s investment in the property.

Resources

See Also

Capital expenditure

Capital gains

Capital gains tax

Capital growth

Capped rate mortgage

Lifetime cap

Resources

Notes and References

1. Concept of Cap provided by the Anderson Dictionary of Law (1889) (Dictionary of Law consisting of Judicial Definitions and Explanations of Words, Phrases and Maxims and an Exposition of the Principles of Law: Comprising a Dictionary and Compendium of American and English Jurisprudence; William C. Anderson; T. H. Flood and Company, Law Publishers, Chicago, United States)