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 ?
Equity REITs' Revolving Lines of Credit' is available at www.
5, 2000 were approximately $136 million, leaving nearly $174 million in unused capacity under the company's revolving lines of credit.
NASDAQ:TTWO) announced today that the revolving lines of credit it maintains within its Alliance Inventory Management, Inc.
Reynolds, executive vice president and chief financial officer of Health Care Property Investors, commented: "We view the decision by the company's bank group to increase and extend the duration of the revolving lines of credit in this turbulent market environment as extremely positive.
Under the new revolving lines of credit, at the company's current senior debt rating of Baa1/BBB+/A- from Moody's Investors Services, Standard and Poor's Rating Group and Duff and Phelps Credit Rating Co.