Line of Credit

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Related to Revolving Lines of Credit: 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 ?
Inability of REITs to renew revolving lines of credit would likely hinder the capability of such REITs to meet their financial obligations and would likely result in rating downgrades," said Marks.
GMAC-RFC Health Capital, part of GMAC-RFC's Business Capital Group, provides unregulated capital solutions including revolving lines of credit, cash flow term loans, fixed asset term loans and real estate bridge loans to healthcare enterprises.
CFC has not borrowed under the facilities; total available revolving lines of credit under the three facilities in place at March 23, 2005, is $5,000 million.