Commitment fee

Commitment fee
A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced. The New York Times Financial Glossary

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commitment fee commitment fee fee

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   A fee paid by a borrower for a lender's commitment to make funds available.

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commitment fee UK US noun [C]
BANKING, FINANCE an amount of money a bank, etc. charges a customer to keep a loan available for them: »

They will be charged a commitment fee of up to $250,000 every three months for unused portions of the line of credit.


Financial and business terms. 2012.


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