Backup Line of Credit

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Backup Line of Credit

A bank assurance of funds obtained by an issuer of commercial paper to protect the CP investor from default. The issuer pays a commitment fee to the bank.

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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Around 2,000 barrels of oil were lost in the incident, however, production did not come to a halt as the oilfield is equipped with backup lines, said a ministry official.
Backup lines typically kick in, keeping the power on.
If commercial and investment banks are forced to trim their risk exposure and shore up their capital positions, might they not scale back their extension of credit, their provision of backup lines, and their willingness to make markets in risky securities?
The company reduced analog phone lines by 66 percent, and reduced copper backup lines associated with its communications infrastructure by 75 percent.
The runoff in commercial paper significantly reduced the demand for commercial paper backup lines of credit, which are provided mainly by large commercial banks.
The omnipresent Indigo Girls figure on this CD too: Emily Saliers and Amy Ray sing backup lines like "Keep it to yourself" on Grauer's angry diatribe against "Gossip.
Based on what happened in the first round, the backup lines might decide the upcoming series between the Red Wings and Mighty Ducks.
Availability of lines of credit has decreased for more than 33 percent of respondents that currently use them, while 43 percent of respondents using backup lines of credit for their commercial paper program reported either a severe or moderate decrease in availability.
The process of liquidity analysis includes a review of near-term debt maturities, contingent obligations based on rating or other triggers and the adequacy of committed backup lines and liquid assets to cover these obligations in the event that an issuer's access to bank and/or capital markets is denied or reduced.
These products, such as senior bank loans and even commercial paper backup lines, expose ML & Co.
Best monitors other liquidity sources such as access to capital markets, holding company resources and backup lines of credit when determining ratings.
The facilities provide for letter of credit capacity, a revolving credit facility, and commercial paper backup lines.