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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
This included three unsecured term loans totalling USD695m and three unsecured revolving lines of credit with total capacity of USD1.1bn and a maturity date of October 2020.
Gemino's financial products include revolving lines of credit secured by accounts receivable used to support working capital needs, as well as senior secured term loans used primarily to fund acquisitions, debt restructurings and growth.
BANKING AND CREDIT NEWS-6 April 2010-Capital Access Network inks USD187.5m revolving lines with Wells Fargo, KeyCorp, Fifth Third Bancorp(C)1994-2010 M2 COMMUNICATIONS http://www.m2.com