Bank line - Line of credit granted by a bank to a customer.
A moral, rather than a contractual commitment by a bank to provide a loan to a borrower up to a stated total amount over a stated period, typically one year.Because a bank line is not a legal commitment, it is not usual for a commitment fee to be charged. However it is often necessary to keep compensating balances on deposit, typically 10% of the bank line plus an additional 10% of actual borrowings. Where customers are officially notified in respect of a line the term is advised line or confirmed line. In cases where the bank sets an internal guide and the customer is not notified the term is guidance line. Bank line is also known as a line of credit.
Bank line : line of credit granted by a bank to a customer.
a moral, rather than a contractual commitment by a bank to provide a loan to a borrower up to a stated total amount over a stated period, typically one year.because a bank line is not a legal commitment, it is not usual for a commitment fee to be charged. however it is often necessary to keep compensating balances on deposit, typically 10% of the bank line plus an additional 10% of actual borrowings. where customers are officially notified in respect of a line the term is advised line or confirmed line. in cases where the bank sets an internal guide and the customer is not notified the term is guidance line. bank line is also known as a line of credit.
Bank line