Line of Credit

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Related to Revolving Lines of Credit: 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 primary objective of the conspiracy was for defendants Miller, Gary Gitto and Charles Gitto to deceive the secured lenders and to cause the secured lenders to provide revolving lines of credit to Gitto/Global and to advance monies to Gitto/Global pursuant to the terms of the revolving lines of credit far in excess of what Gitto/Global's actual inventory and accounts receivable would support," the indictment states.
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.
The firm provides senior loans to healthcare service providers throughout the US with typical financing needs ranging from USD 2m to USD 25m in the form of revolving lines of credit and term loans.