Under a line of credit agreement, a bank may require an annual cleanup, which means that the borrower must pay off all its outstanding debts to all its operational creditors for a certain number of days during the year.

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An annual cleanup in a line of credit agreement typically requires the borrower to fully pay down their outstanding balance on the line of credit to $0 for a certain period each year, not to pay off all outstanding debts to all operational creditors.

Under a Line of Credit Agreement, a Bank May Require