Commitment fees are usually required for revolving credit agreements,but not for lines of credit.

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Commitment fees are typically associated with revolving credit agreements, which provide borrowers with a maximum amount of credit that can be used repeatedly over a period of time. In contrast, a line of credit operates more like a traditional loan, where the borrower only accesses the funds as needed, and there is generally no commitment fee associated with the arrangement.

Commitment Fees Are Usually Required for Revolving Credit Agreements,but Not