A formal, legal commitment to extend credit up to some maximum amount over a stated period of time.?

****************the answer is Revolving credit agreement***************

My answer is option (B) Revolving credit agreement

Revolving Credit Agreement The Borrower (such term and each other capitalized term used and not otherwise defined herein having the meaning assigned to it in Article I), has requested the Lenders to make Loans to the Borrower on a revolving credit basis on and after the date hereof and at any time and from time to time prior to the Maturity Date.

 

The proceeds of borrowings hereunder are to be used for the purposes described in Section 5.9. The Lenders are willing to establish the credit facility referred to in the preceding paragraph upon the terms and subject to the conditions set forth herein

 

A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customer's current cash flow needs.Often referred to as "revolver."

 

Answer  = Revolving Credit Agreement

c-                                                                                                                                 

Line of credit

Revolving credit agreement

It is a Line of credit agreement.

Correct Ans is

 

Revolving credit agreement

 

Thnx....

>>>>>>>>>>>  Revolving credit agreement

 

A formal, legal commitment to extend credit up to some maximum amount over a stated period of time is a line of credit.

 

 

 

Letter of credit

 

Based on the question and the meaning of the answer:  revolving credit agreement

>>>>>>>>>>>>>>>>>>Revolving credit agreement