Line of Credit

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Related to revolving credit: Revolving credit facility, Revolving line of credit

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 ?
As with the previous Revolving Credit Facility, under the new arrangement funds are available to support the short-term borrowing needs of the company.
Under the new $140 million revolving credit facility (the "2011 Revolving Credit Facility"), the interest rate spread over the LIBOR base rate was reduced from a 3.
9 million annually and providing substantial borrowing capacity under our new revolving credit agreement.
The company has substantial experience as an owner and operator of office properties in the New York metropolitan area, as well as proven access to unsecured capital through term loans, revolving credit agreements and trust preferred securities.
3 million of outstanding debt under the revolving credit line, with the balance for working capital and general corporate purposes.
Commenting on the facility, the company's Chief Financial Officer, Mark Cozzi, said that "With the closing of the JPMorgan Chase revolving credit facility, Leor has achieved an important and impressive milestone.
A four-year, $10 billion revolving credit facility to GMAC;
The interest rate on the 2006 Revolving Credit Facility, of which approximately $57 million was drawn at the closing, was reduced from LIBOR plus 2.
acting as Administrative Agent on the 2006 Term Loan Facility and 2006 Revolving Credit Facility.
revolving credit facility of $150 million (the "US Revolver"), which includes a sub-facility of $20 million for letters of credit, and a $350 million term loan (the "Term Loan").
s (TOA) revolving credit facility, senior unsecured notes and senior subordinated notes to reflect the changes in priority of debt repayments following TOA's $800 million revolving credit facility being changed from an unsecured facility to a secured facility.