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 ?
There are two different types of credit that you should be aware of: non-revolving and revolving credit. Knowing what the differences are is essential to understanding the effect it has on your long-term credit and which one to use in a variety of financial situations.
In conjunction with the amendment, the total commitment of its undrawn revolving credit facility is USD25.5m until December 2020.
The company said this revolving credit facility will be used to finance acquisitions and for general corporate purposes and is permitted under the current senior secured bond frameworks.
This amends and extends the company's present USD12.5bn revolving credit facility.
The Cumulus revolving credit facility extend its maturity to May 15, 2020, "increase its applicable LIBOR margin to 11%, subject to a 1% LIBOR floor, and increase its undrawn commitment fee to 5%, as well as separately amended to (x) modify its financial covenant to permit the borrowing under the revolving credit facility in connection with the Exchange."
According to the company, it has used the proceeds from term loan and revolving credit facility to pay off the previous senior secured term loans, which had an aggregate principal amount outstanding of USD1.69bn as of 28 March 2015.
The participating banks in the revolving credit facility are BNP Paribas, Deutsche Bank Luxembourg S.A., Standard Chartered Bank (Dubai International Financial Centre Branch).
Concurrent with the completion of the offering, LMI Aerospace also entered into a new USD90m revolving credit facility that matures in June 2019.
The rating action followed a statement by DHCOG on December 30 that the company had reached a deal with lenders to convert the $555 million revolving credit facility into a five-year term loan.
The facility will be used for general corporate purposes and will replace its existing $3.15 billion revolving credit facility, signed in August 2008.
Just a week after it obtained a $200 million unsecured revolving credit facility that CFO Patrick Carroll, said would give it more financial muscle, Lexington Corporate Properties Trust (LXP) has acquired five industrial/manufacturing facilities in a sale/leaseback transaction with Dana Commercial Credit Corporation, a wholly-owned subsidiary of Dana Corporation.