A Written,legally Binding Agreement That Obligates the Bank to Lend

A written,legally binding agreement that obligates the bank to lend a firm any amount up to a stated maximum,regardless of the financial condition of the firm (unless the firm is bankrupt) as long as the firm satisfies any restrictions in the agreement is called:

A) a bridge loan.
B) a single,end-of-period-payment loan.
C) a short-term mortgage loan.
D) a committed line of credit.
E) an uncommitted line of credit.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free