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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
The micro-finance firm will use the net proceeds to repay balances under some of its revolving credit lines and for general corporate purposes.
In particular, Sberbank will extend two non-revolving credit lines each amounting to RUB1bn, another non-revolving credit line worth RUB500m and a RUB1bn revolving credit line.