__________ensure that money loaned under a line of credit agreement is actually being used to finance seasonal needs.
A) Commitment fees
B) Operating change restrictions
C) Annual cleanups
D) Compensating balances

Question

Quizplus · Accepted Answer

Annual cleanups require the borrower to pay off the line of credit completely for a short period each year, ensuring that the credit is used for short-term needs rather than long-term financing.

__________Ensure That Money Loaned Under a Line of Credit Agreement