A written document in which a lender promises to make credit available to a borrower,over a designated future period,up to a maximum amount in return for a commitment fee is known as a(n):
A)negative covenant.
B)loan guarantee agreement.
C)loan policy agreement.
D)loan commitment agreement.
E)affirmative covenant.

Question

Quizplus · Accepted Answer

A loan commitment agreement is a written document in which a lender promises to provide credit to a borrower for a designated future period, up to a maximum amount in exchange for a commitment fee. This agreement outlines the terms and conditions of the loan, such as interest rate, repayment schedule, and any other terms specific to the loan.

A Written Document in Which a Lender Promises to Make