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.
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Instead of concentrating on providing traditional services like running accounts and helping small businesses, they went on a crazed spree betting billions on dodgy takeovers and wild schemes.
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The company said that the fee would cover administrative costs of running accounts that are left idle.
For several weeks, E&P has been been featuring entries from the bureau's blog Inside Iraq, which provides one of the most chilling running accounts of life in Baghdad.
Judy said the team was delighted with the boost in turnover and the benefits that running accounts in house brought to their service.