Committed Facility

AAA

DEFINITION of 'Committed Facility'

A credit facility whereby terms and conditions are clearly defined by the lending institution and imposed upon the borrowing company.

INVESTOPEDIA EXPLAINS 'Committed Facility'

In committed facilities, the borrowing companies must meet specific requirements set forth by the lending institution in order to receive the stated funds.

RELATED TERMS
  1. Facility

    A formal financial assistance program offered by a lending institution ...
  2. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
  3. Uncommitted Facility

    An agreement between a lender and a borrower whereby the lender ...
  4. Open-End Credit

    A pre-approved loan between a financial institution and borrower ...
  5. Swingline Loan

    A loan that grants institutions access to large amounts of cash ...
  6. Credit Agreement

    A legal contract in which a bank arranges to loan a customer ...
Related Articles
  1. What Is A Corporate Credit Rating?
    Investing Basics

    What Is A Corporate Credit Rating?

  2. Are High-Yield Bonds Too Risky?
    Bonds & Fixed Income

    Are High-Yield Bonds Too Risky?

  3. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  4. The Importance Of Your Credit Rating
    Credit & Loans

    The Importance Of Your Credit Rating

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center