line of credit

(redirected from Locs)
Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

Line of credit

An informal loan arrangement between a bank and a customer allowing the customer to borrow up to a prespecified amount.

Line of Credit

An agreement between a bank and a company or an individual to provide a certain amount in loans on demand from the borrower. The borrower is under no obligation to actually take out a loan at any particular time, but may take part of the funds at any time over a period of several years. This agreement is fairly common in situations in which a business must make payroll but does not always have the operating income to do so, especially when its operating income is seasonal or otherwise varies from month to month. It is also called open-end credit or a revolving line of credit. See also: Credit Card.

line of credit

A credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit. A line of credit, generally arranged before the funds are actually required, provides flexibility for the customer in that it ensures the ability to meet short-term cash needs as they arise. Also called bank line, credit line, revolver, revolving credit agreement.

Line of credit.

A line of credit, sometimes called a bank line, is the most you can borrow under a revolving credit arrangement with a credit card issuer, bank, or mortgage lender.

When you borrow against a line of credit, you pay interest on the amount of money you actually borrow, not on the available balance, or full amount you are able to borrow.

For example, if you have a $10,000 line of credit on a credit card, you may borrow as much or as little as you want up to that amount, and you pay interest only on the amount you have borrowed.

If you carry a balance of $3,000, you only pay interest on that amount, but there is still $7,000 available for you to borrow. Once you repay the amount you borrow, you can use it again.

A line of credit may be secured with collateral, or unsecured. A line of credit on a credit card is usually unsecured, for example. But if you have a home equity line of credit, your home serves as collateral against the amount you borrow.

line of credit

A revolving loan issued by a financial institution;it may be secured by a mortgage or other collateral, or unsecured.The borrower may draw down the line, up to the maximum limits, at any time and pay interest each month. If the principal is repaid during the time period of the line, then the maximum amount or any lesser amount may be drawn down again.Lines of credit are typically for one year, and then extended from year to year afterward. If a borrower draws down the maximum amount and then does not repay any of the principal,the lender will eventually refuse to renew the note and may require payment in full or conversion to an amortizing loan with regular monthly payments that will eventually pay it in full.Lines of credit are best used by persons with reliable income arriving at sporadic times or by persons awaiting the sale of an asset but needing cash in the meantime.

References in periodicals archive ?
Emerging Technologies in Lab-on-a-Chip: Microfluidics and uTAS is part of the semiconductor vertical subscription service, and examines the latest advances in microfluidic and uTAS LOC technologies that are likely to enable LOCs to move from the laboratory into the commercial world.
Other advantages of portability, rapid assay times, and smaller sample requirements are likely to accelerate the adoption of LOC technology, especially in the defense and public health sectors.
The prolific growth of plastics/polymers along with technological advances in microelectromechanical systems (MEMS), semiconductor microfabrication methods, biosensors, and biomedical engineering expects to have a positive impact on the commercialization of LOC.
However, many LOC researchers have lost sight of the bigger picture and actual market needs due to their constant bid to improve the design mechanics for microfluidics and uTAS.
Hence, the market for LOC microfluidic systems is likely to be limited, unless the technology demonstrates sufficient benefits to justify the additional investment.
The bonds of each series are subject to mandatory tender: (i) on interest mode conversion dates; (ii) on the day following the last day of each flexible interest rate period; and (iii) upon the expiration, termination or substitution of the LOC or SBPA relating to a series of bonds.
Positive, with the LOC provided by Fleet National Bank (rated
50 million subseries H-7 rated 'AA+/F1+' with the LOC provided
100 million subseries H-8 rated 'AAA/F1+' with the LOC
The above ratings are based on Fitch's new methodology that considers the joint probability of the failure of both a municipal issuer and a bank LOC provider.