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Commitment fee

• The fee that is normally charged on a revolving credit agreement, it often applies to the average unused balance of the borrower's credit line.

• A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced.

 
 Embedded terms in definition
 Average
Commercial
Commitment
Credit
Its
Lend
Return
Revolving credit agreement
 
 Related Terms
 Advance commitment
Back fee
Commitment
Firm commitment underwriting
Front fee
Management fee
Origination fee
Production flow commitment
Redemption fee
Split fee option
Standby fee
Take up fee
Underwriting fee

<< Commitment Committed facility >>

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