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Commitment Fee

   Also found in: Dictionary/thesaurus, Legal 0.01 sec.
Commitment Fee
A fee that a lender assesses on a borrower to keep a credit line open regardless of use. For example, a credit card company may charge a card holder $60 per year to allow him/her to continue to use the credit card. This should not be confused with interest, which is only calculated if a loan is made or a credit line is used.


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The commitment fee included both refundable and nonrefundable portions.
35) Like cancellation fees, the commitment fee is to compensate the arbitrators for lost employment.
In connection with this amendment, interest rates applicable to the extended portion of the ABL revolving facility increase, commitment fees for unused borrowing availability under the extended portion of the facility increase and the borrowing availability threshold below which financial covenants apply under the ABL credit agreement decreases, as described in the company's Form 8-K filed today.
 
 
 
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