Line of Credit

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Related to Revolving Loans: Revolving credit facility, Revolving Loan Funds

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 ?
There are five charities in the area including, AlHarsh Society which carries out a revolving loans project, goat breeding project, and a training center on the use of computers and the Internet, in addition to the Association of Al Hamra for people with special needs which is implementing a beekeeping project and computer center.
Initially, for term loans and revolving loans maintained as LIBOR, Euribor or Bankers' Acceptance loans the margin will be 1.
Interest rates applicable to the term loans and the revolving loans are either at a Eurodollar Rate (which is based in part on LIBOR and the Company's consolidated leverage ratio) or a fluctuating rate per annum based on Bank of America, N.
The Company is obligated to make mandatory repayments on the term and revolving loans with the net proceeds of any asset sales.
Outstanding loans under the agreement will bear interest at either prime or 1-1/4 percent over the Federal Funds Rate for revolving loans and prime plus 1/2 percent or 1-3/4 percent over the Federal Funds Rate for the term loans, whichever is lower.
The Partnership intends to use the net proceeds from the offering to repay the $600 million term loan and most of the revolving loans outstanding under Regency's credit facility.
to extend the repayment period of its term and revolving loans to December 31, 2007.
The new facility provides for revolving loans and the issuance of letters of credit to Veritas and certain of its subsidiaries of up to $45 million in the United States, $15 million in Canada, $15 million in Singapore and $10 million in the United Kingdom.