Uncommitted Facility

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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 ?
Additional Liquidity Needed: We believe Tiphone probably has limited liquidity after it paid off the IDR1 trillion of bonds due July 2018 as its cash position at end-2Q18 was IDR762 billion and the company had minimal undrawn committed and uncommitted facilities as of 2Q18.
The company decreased its debt by USD 1.2bn (to USD 7.8bn) since end-2008, and currently has a unutilized borrowing facility of USD 1,170mn, including USD 607mn of uncommitted facilities. Evraz provided positive if unenthusiastic 2H09 guidance, based generally on increasing steel prices globally and volumes at its Russian steel division growing from July 2009.
Mr Richards said Hammerson has more than pounds 600 million in cash and uncommitted facilities and was reviewing whether this should be used to make fresh investments, to return capital to shareholders, or a combination of the two.
Nevertheless, we consider the company's liquidity position as adequate due to undrawn uncommitted facilities and firm access to local funding, including the local bond market.
Ample Liquidity: Swire Properties had a cash balance of HKD1.7 billion, undrawn committed facilities of HKD8.5 billion and undrawn uncommitted facilities of HKD1.1 billion at end-2016, which is more than sufficient to cover its short-term debt of HKD7.5 billion.