Definition of transfer

1. moving funds from one account to another, as from checking to savings.
2. electronic payment from one bank to another through the Automated Clearing House system.
3. large dollar payment from one bank to another through the fed wire or the Clearing House Interbank Payments System in New York.
4. real estate conveyance from buyer to seller that takes place at a mortgage closing.
5. clause in a letter of credit allowing the beneficiary to make the proceeds of the credit available to a third party (secondary beneficiary). The secondary beneficiary is obligated to present the draft to the advising or paying bank to receive payment.
6. moving stocks, bonds, or other securities from one owner to another, and recording the change of ownership on registration papers.
7. assumption of a mortgage by a new borrower.

exchange of ownership of property from one party to another. For example, a piece of real estate may be transferred from seller to buyer through the execution of a sales contract. Securities and mutual funds are typically transferred through a transfer agent, who electronically switches ownership of the securities. In banking, transfer refers to the movement of funds from one account to another, such as from a passbook account to a checking account.