Uncommitted Facility

Uncommitted Facility

An agreement between a bank and a company or, rarely, an individual to provide an unspecified amount in loans on demand from the borrower. The borrower is under no obligation to actually take out a loan at any particular time. Funds borrowed are not repaid on any particular schedule, but they must be repaid on demand from the bank. This agreement is fairly common in situations where a business must make payroll but does not always have the operating income to do so. See also: Committed facility, Line of credit, Overdraft facility.
References in periodicals archive ?
Description : The project is the first utilization under the US$400 million uncommitted facility Scaling Up Capital Markets Solution for Financing Energy Efficiency in LAC (RG-X1250).
The amended credit agreement includes a committed credit facility, which has been increased by $35 million to $185 million, and an uncommitted facility, which has been increased by $15 million to $90 million.
Since a supplier finance facility for discounting account payables is legally an uncommitted facility based on the Buyer's irrevocable payment instructions, the Buyers and Suppliers want relationship banks to be involved to ensure continuity of their business and availability of bank finance irrespective of the market conditions.
Project Description : Under a joint programme between the European Investment Bank (EIB) and IDB to support companies seeking overseas expansion, IDB will provide an uncommitted facility of up to US$250 million in the form of A Loans, together with mobilization efforts to provide an additional amount of up to US$250 million, for a total of up to US$500 million to finance eligible financial intermediaries.
35% over Libor, and an uncommitted facility of $75 million, which bears interest on borrowings at 1.
The credit facility, which is a restatement of the Company's previously uncommitted facility with Citibank, includes the following sub-limits: (1) $30 million available for standby letters of credit; (2) $20 million available for commercial letters of credit; (3) a line for term loans, each having a term of no more than five years, in the aggregate amount of up to $25 million that can be used for acquisitions; and (4) $7.
today announced that it has completed the refinancing of its bank credit facilities with new senior unsecured credit facilities totaling $750 million and a $200 million uncommitted facility for the purchase of hedged crude oil.
Talbots is also currently in discussions with a fourth lending bank to convert the remaining $15 million uncommitted facility to a committed facility.
today announced that it has launched a bank credit transaction designed to replace its existing senior secured credit facilities with new senior unsecured credit facilities totaling $750 million and a $200 million uncommitted facility for the purchase of hedged crude oil.
2 billion uncommitted facility that was scheduled to mature on November 14, 2008.
This facility is an uncommitted facility used to finance the purchase of hedged crude oil inventory for storage when market conditions warrant.
Fitch estimates borrowings under the facility were approximately $105 million at year end, with an additional $40 million drawn from a $50 million uncommitted facility.