Commitment Fee


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Related to Commitment Fee: Management fee, Upfront 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 ?
Following the merger, Schneider paid a commitment fee to the French banks, and sought reimbursement from Square D.
In the FIRST TWO years of implementation of the agreed economic programme the only cost to Serbia was payment of the commitment fee in the amount of EUR 2.25 mln.
The COA said the delayed implementation of the infrastructure projects has also caused the government to lose P27.647 million in commitment fees for the loans extended by Japan International Cooperation Agency (JICA).
YA Global is entitled to a one-time commitment fee of EUR200,000 in shares and has already received customary structuring and due diligence fees.
He said those projects were canceled because 'there was a commitment fee.'
Concurrently, Cytori has issued shares of common stock to LPC as a commitment fee and will issue additional shares of common stock on a pro-rata basis only when and if shares are sold to LPC.