Line of Credit

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Related to Revolving Credit Lines: Revolving credit facility

Line of Credit

The maximum borrowing power granted to a person from a financial institution.

Line of credit denotes a limit of credit extended by a bank to a customer, who can avail himself or herself of its full extent in dealing with the bank but cannot exceed this limit. It most frequently covers a series of transactions, in which case, when the customer's line of credit is nearly exhausted or not replenished, the customer is expected to reduce the indebtedness by submitting payments to the bank before making additional use of the line of credit.

See: capital
References in periodicals archive ?
Vale announces that it has entered into a contract for a five-year revolving credit line facility of US$ 2 billion in a best effort transaction.
The standstill agreement will also terminate in the event of the termination or expiration of the Company's existing term or revolving credit lines with the Royal Bank of Canada, or after five business days written notice from Noteholders owning a majority in interest of the outstanding principal amount of the Notes.
Positively, the company has secured two new revolving credit lines totaling $650 million, consisting of a 364-day $325 million tranche and a three-year $325 million tranche.
0 million in additional short-term revolving credit lines.