Under this arrangement, the lending institution is not under any obligation to provide a specific sum to the borrowing company. Furthermore, the borrowing company is not subject to conditions set by the lending institution.
Investment dictionary. Academic. 2012.
uncommitted facility — An agreement between a bank and a company in which the bank agrees in principle to make funding available to the company but is under no obligation to provide a specified amount of funding; if a loan is made it will be for only a short period.… … Accounting dictionary
uncommitted facility — An agreement between a bank and a company in which the bank agrees in principle to make funding available to the company but is under no obligation to provide a specified amount of funding; if a loan is made it will be for only a short period.… … Big dictionary of business and management
facility — An agreement between a bank and a company that grants the company a line of credit with the bank. This can either be a committed facility or an uncommitted facility … Accounting dictionary
facility — An agreement between a bank and a company that grants the company a line of credit with the bank. This can either be a committed facility or an uncommitted facility … Big dictionary of business and management
Facility — A term used to describe financial assistance programs offered by lending institutions to help companies requiring capital These financial assistance programs are merely another name for loans taken on by companies. Examples of such facilities… … Investment dictionary
committed facility — An agreement between a bank and a customer to provide funds up to a specified maximum at a specified interest rate (in the UK this is usually based upon an agreed margin over the London Inter Bank Offered Rate) for a certain period. The total… … Accounting dictionary
committed facility — An agreement between a bank and a customer to provide funds up to a specified maximum at a specified interest rate (in the UK this is usually based upon an agreed margin over the London Inter Bank Offered Rate) for a certain period. The total… … Big dictionary of business and management
tender panel facility — United Kingdom An uncommitted facility under which a company may request competitive bids from a prearranged group of banks (the tender panel members ). The bids are normally to subscribe for euro commercial paper to be issued by the company or… … Law dictionary
commitment — n 1: an act of committing: as a: placement in or assignment to a prison or mental hospital petition for commitment compare incompetent, interdiction ◇ Commitment to a mental health facility is called … Law dictionary
money-market line — An agreement between a bank and a company that entitles the company to borrow up to a certain limit each day in the money markets, on a short term basis (often overnight or in some cases up to one month). See: uncommitted facility … Accounting dictionary
