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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- Contributing to securing backup lines in the event of a disaster -
EPIC RATP has a EUR2 billion domestic commercial paper programme without any backup lines. This is only possible because its EPIC status means it can gain access to funding through the Debt Public Fund in a liquidity crisis.
The statement, meantime, warned the terrorist grouplets that have deployed in Northern Iraq for the past several years and are backed up by Tehran's enemies to stir insecurity in Iran of IRGC's crushing and harsh response to any hostile move, and vowed to target their backup lines no matter where they are.
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 runoff in commercial paper significantly reduced the demand for commercial paper backup lines of credit, which are provided mainly by large commercial banks.
These inflows allow banks to meet increased loan demand from borrowers drawing funds from pre-existing CP backup lines, without running clown their holdings of liquid assets.
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." Grauer and Zick's enthusiastic music makes you want to simultaneously laugh and tap your feet--and what better way to usher in the next thousand years.
This eliminates the need for backup lines, since the VAN can pick up all network traffic when a high-volume circuit fails.