Commitment Fee

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Related to Commitment Fees: Upfront Fee, Management fee

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.
References in periodicals archive ?
First, it contended that the transaction did not involve granting put options to the mortgage originators that paid commitment fees to Freddie Mac.
Indeed, there has been relatively scant commentary on the methods for determining the arbitrators' fees and the types of fees that they may charge, such as cancellation or commitment fees.
Net interest margin excluding the amortization of the Omnibus Credit Agreement upfront commitment fee and fees on the undrawn balance was 1.
Elixir Gaming would generally have a period of two months from the time of availability to consider the placement of its units in the relevant area and no additional commitment fee would be required for the placement in such area provided that the Company's total number of operating gaming machine seats do not exceed 640.
It will result in significantly reduced interest costs, through lowered commitment fees and interest rate margins.
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.
SUMMARY OF SURVEY RESULTS Fixed-Rate Mortgages Average Average Conventional Conventional 30-Year 15-Year Commitment Fees & Commitment Fees & Rate Points Rate Points US 7.
Interest and the commitment fees are generally payable through an increase in the outstanding balance under the facility.
78 percent, and waived all origination and commitment fees on this transaction.
The rating of the class A-1 notes addresses the likelihood that investors will receive full and timely payments of interest and commitment fees on the drawn and unfunded amounts, respectively, as well as the aggregate outstanding amount of principal of any drawn amounts by the stated maturity date.
The loans were structured for five- to 15-year terms at fixed rates with no commitment fees.
At the Company's request the principal amount of the agreement has been reduced from $50 million to $39 million, which will result in lower bank commitment fees being paid by the Company.