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Backup Line

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Backup line
A commercial paper issuer's bank line of credit covering maturing notes if, for some reason, selling new notes to cover the maturing notes is not possible.

Backup Line of Credit
A bank's guarantee of an issuer's commercial paper. Commercial paper is a short-term, unsecured debt security usually issued by a company with a very high credit rating. As a result, commercial paper is very low-risk. The backup line provides additional security for the paper, but usually does not provide credit for the full value of the paper. The issuer pays a fee to the bank for the backup line.


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The greatest challenge in launching the commercial paper program was not Microsoft's credit quality but "the scarcity of bank balance sheets" to provide backup lines, notes Anita Prasad, general manager for treasury.
But I whittled down my gear: pre-made rigs, fillet knife, pliers and tools, backup line spools, box of jigs, leads and swivels made for fast replacement, plus a bottle of water.
In June, Hewlett-Packard introduced a suite of de-duplication systems for small and medium-sized businesses and added some features to its HP StorageWorks backup line.
 
 
 
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