Committed Facility

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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 ...
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