Line of Credit

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Related to Revolving Line: Revolving credit facility, Available 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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
As a result of these changes, Delta expects to end the quarter with $4.2 billion in liquidity, including a fully available, $1 billion revolving line of credit.
Under the revolving line of credit facility, the company is able to borrow up to an amount equal to the sum of 75% of its eligible accounts receivable, plus 30% of its eligible inventory, up to a maximum of $2 million plus any principal amounts of the term loan that have been repaid.
However, determining whether it is beneficial for a business to utilize its bank revolving line of credit to take advantage of trade discounts is a little trickier.
"The asset-based and cash flow financing program gives the DMC financial team a revolving line of credit before the receivables are collected," says Vitale.
Alterra received commitments from a syndicate of banks led by Houston-based Bank United for an $80 million revolving line of credit.
The Ogawas, who are establishing an SBA-guaranteed revolving line of credit for their export sales, are beginning to benefit from this new and flexible export financing program.
United capital was able to source a $10MM revolving line of credit, secured by US and European accounts receivables.
At June 30, cash, cash equivalents and short-term investments were approximately $10M, with a draw on the revolving line of credit of $52M.
Moscow: Sberbank has opened a revolving line of credit worth approximately 1.5 bln roubles for nanomaterials producer Metaclay Joint Stock Company.
This new credit agreement increases the size of the company's committed revolving line of credit by USD110m against the revolving line of credit under its prior credit agreement, while lowering the interest rate by 75 basis points.
(NASDAQ: ATEA) said it has obtained a two year revolving line of credit for working capital needs from Silicon Valley Bank for USD3m.