Prime Underwriting Facility
 |
Definition of 'Prime Underwriting Facility'
A kind of revolving underwriting facility. Prime underwriting facilities peg the lender's yield to the bank's prime rate. Most prime underwriting facilities are short-term notes of some sort.
|
 |
Investopedia explains 'Prime Underwriting Facility'
The usual prime underwriting facility is a note with a maturity of anywhere from one to three years. In some cases, the lead bank will be unable to place the loan. When this happens, it will ask the underwriter of the facility to fund the balance of the credit.
|
|
|
