A a written,legally binding agreement that obligates the bank to lend a firm any amount up to a stated maximum,regardless of the financial condition of the firm (unless the firm is bankrupt)as long as the firm satisfies any restrictions in the agreement is called

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A committed line of credit is a written, legally binding agreement that obligates the bank to lend a firm any amount up to a stated maximum, regardless of the financial condition of the firm (unless the firm is bankrupt) as long as the firm satisfies any restrictions in the agreement. This type of credit is especially useful for firms that have fluctuating cash needs over time.

A a Written,legally Binding Agreement That Obligates the Bank to Lend