Committed Credit Facility

From Open Risk Manual

Definition

Committed Credit Facility. A credit facility which has been formally agreed between a potential lender and a potential borrower.

This represents a formal commitment from the potential lender. The commitment may also describe committed tranches of the Credit Facility set out for different purposes. This may have fees associated with it.

A credit facility that is committed to be available for a stated period under specific conditions and is formally recorded as an obligation of a finance provider. The committed nature of the facility requires a more stringent credit assessment than is the case with an Uncommitted Facility

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This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

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