A revolving loan commitment is an agreement between a bank and a customer that the bank will entertain a request for a loan from the customer and in most cases the bank will make the loans even though they are not obligated to do so.
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Q5: SLCs issued by banks require them to
Q6: SLCs are often used in connection with
Q7: SLCs are NOT considered loans for the
Q8: With respect to SLCs, liquidity risk and
Q9: A material adverse change (MAC) clause prohibits
Q11: A commitment fee on a revolving loan
Q12: Firms face markup risk, which is associated
Q13: The major risk facing banks with loan
Q14: Initially, interest rate volatility was the motivation
Q15: NIF stands for note insurance fund.
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