Line of Credit

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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 ?
Outstanding loan balances on the revolving credit facility will accrue interest daily at a rate equal to LIBOR plus 1.
This unsecured revolving credit facility raises the company's borrowing capacity to USD400m from the USD200m as well as provides an accordion feature allowing for an additional USD350m of capacity, subject to customary terms and conditions, resulting in a maximum borrowing capacity of USD750m.
Additional existing terms in RCPC's prior revolving credit facility were modified under the 2011 Revolving Credit Facility to conform to the recent amendments to RCPC's 2011 Term Loan Facility, which, as previously disclosed, was refinanced in May 2011.
Additionally, the credit agreement refinancing reduces the company's cost of debt and provides its capital structure with more flexibility, it said and added that the new credit facility lowers the interest rate payable on the tranche A term loans and revolving loans by 100 basis points and increases the revolving credit commitments to USD500m.
While to date there has been no draw-down of the facility, Leor has the ability to draw $40,000,000 of the $150,000,000 revolving credit facility based on the current borrowing base.
Under the 2011 revolving credit facility, the interest rate spread over the LIBOR base rate was reduced from a 3.
Unused fees on the revolving credit facilities are 0.
Borrower and Canadian Borrower revolving credit facilities have an interest rate of Libor plus 300 bps, subject to reduction as Dollar Financial Corp.
Fitch assigned a Recovery Rating (RR) of 'RR1' to TOA's amended secured revolving credit facility, indicating outstanding (90%-100%) recovery prospects for holders of this debt issue.
On October 18, 2006, the company entered into an amendment to its Revolving Credit Agreement and its Term Loan Agreement extending the time period for delivering its Form 10Q for the quarter ended August 31, 2006 to December 24, 2006.
5 million loan syndication, consisting of an amended floor plan credit facility and a revolving credit facility.
NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast, today announced that its $350 million, three-year unsecured revolving credit facility, which was initially obtained from Bank of America, N.