Back-end fees on loan commitments are charged as a certain percentage of
A)commitment size.
B)loan taken down.
C)utilized portion of commitment size.
D)unused portion of commitment size.

Question

Quizplus · Accepted Answer

Back-end fees on loan commitments are typically charged on the unused portion of the commitment size, as they are intended to compensate the lender for the capital reserved for the borrower that is not utilized.

Back-End Fees on Loan Commitments Are Charged as a Certain