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Commitment Fee
(redirected from Commitment Fees)

    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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7 million of interest and commitment fees through April 29, 2011.
Sauer-Danfoss Inc. Announces Debt Refinancing by PR Newswire
50 percentage points over 3-month LIBOR, putting the current rate at well over 11 percent, but it will also pay commitment fees.
AIG signs 'definitive' USD85bn deal with US Fed by Global Banking News (GBN)
In this case, the taxpayer treated loan purchase commitment fees it received as option premiums; see Federal Home Loan Mortgage Corp.
Loan purchase commitment fees upheld as option premiums by Gottschalk, Stefan / The Tax Adviser
 
 
 
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