Credit Facility
/ˈkrɛdɪt fəˌsɪləti/
Definitions
- (n.) A legal agreement under which a lender provides a borrower access to a specified sum of money, repayable under agreed terms.
The company secured a credit facility to finance its expansion.
- (n.) The maximum amount of credit that a financial institution makes available to a borrower.
The bank increased the credit facility to accommodate the borrower's needs.
Forms
- credit facilities
Related terms
See also
Commentary
In drafting, specify the type and terms of the credit facility clearly to avoid ambiguity regarding repayment conditions and amounts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.