Commitment Fee definition: Copy, customize, and use instantly
Introduction
The term "Commitment Fee" refers to the fee paid by the borrower to the lender for the lender’s agreement to provide credit or financing, even if the full amount is not drawn. This fee compensates the lender for committing to make funds available. Commitment fees are typically a percentage of the unused portion of the credit facility and are a key aspect of financing agreements to ensure the availability of funds.
Below are various examples of how "Commitment Fee" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Commitment Fee" as a percentage of the unused credit
This definition ties "Commitment Fee" to a percentage calculation based on the unused credit amount.
"Commitment Fee" means the fee calculated as [X]% per annum of the unused portion of the credit facility, payable quarterly in arrears.
Definition of "Commitment Fee" as a fixed annual fee
This definition connects "Commitment Fee" to a fixed annual fee.
"Commitment Fee" refers to the annual fee of [$X] payable by the borrower to the lender for the commitment of funds, regardless of the amount borrowed.
Definition of "Commitment Fee" as a fee for unused credit lines
This definition links "Commitment Fee" to credit line usage.
"Commitment Fee" means the fee payable by the borrower for maintaining an unused credit line, calculated as [X]% of the unutilized amount.
Definition of "Commitment Fee" as part of loan agreement terms
This definition applies "Commitment Fee" to loan terms.
"Commitment Fee" refers to the fee that the borrower agrees to pay for the lender's promise to provide funds under the terms of the loan agreement.
Definition of "Commitment Fee" as a fee payable on a quarterly basis
This definition ties "Commitment Fee" to payment frequency.
"Commitment Fee" means the fee due quarterly, calculated as a percentage of the unused portion of the loan commitment.
Definition of "Commitment Fee" as a fee linked to credit availability
This definition connects "Commitment Fee" to available credit.
"Commitment Fee" refers to the fee paid by the borrower to the lender for maintaining the availability of credit, typically based on the unused balance of the facility.
Definition of "Commitment Fee" as an upfront fee
This definition links "Commitment Fee" to an upfront payment.
"Commitment Fee" means an upfront fee paid at the time of the credit agreement’s execution, calculated based on the full amount of the committed credit.
Definition of "Commitment Fee" as a fee for revolving credit facilities
This definition applies "Commitment Fee" to revolving credit.
"Commitment Fee" refers to the fee payable for maintaining a revolving credit facility, typically calculated on the unborrowed portion of the line.
Definition of "Commitment Fee" as a non-refundable fee
This definition ties "Commitment Fee" to a non-refundable term.
"Commitment Fee" means the non-refundable fee payable by the borrower to the lender for the commitment to lend funds, regardless of usage.
Definition of "Commitment Fee" as a fee based on facility size
This definition connects "Commitment Fee" to the credit facility size.
"Commitment Fee" refers to the fee determined by the size of the credit facility, expressed as a percentage of the unused commitment amount.
Definition of "Commitment Fee" as a fee for maintaining a standby facility
This definition links "Commitment Fee" to standby facilities.
"Commitment Fee" refers to the fee charged for maintaining a standby facility, calculated on the unused portion of the available credit.
Definition of "Commitment Fee" as a percentage of the outstanding balance
This definition applies "Commitment Fee" to the outstanding balance.
"Commitment Fee" means the fee charged as [X]% of the outstanding loan balance that remains unused for a specified period.
Definition of "Commitment Fee" as part of syndicated loan agreements
This definition ties "Commitment Fee" to syndicated loans.
"Commitment Fee" refers to the fee applicable to the unused portion of a syndicated loan facility, payable to the lenders for their commitment.
Definition of "Commitment Fee" as an annual percentage fee
This definition connects "Commitment Fee" to an annual rate.
"Commitment Fee" means the annual fee, calculated as [X]% of the total unused commitment, which is payable annually by the borrower.
Definition of "Commitment Fee" as a fee for undrawn credit
This definition links "Commitment Fee" to undrawn credit.
"Commitment Fee" refers to the fee charged on the undrawn portion of a credit facility, calculated on the unused credit available.
Definition of "Commitment Fee" as a condition of loan facility availability
This definition applies "Commitment Fee" to loan conditions.
"Commitment Fee" refers to the fee payable to the lender by the borrower as a condition for maintaining availability of the loan facility.
Definition of "Commitment Fee" as a fee for long-term credit availability
This definition ties "Commitment Fee" to long-term credit.
"Commitment Fee" means the fee calculated annually based on the unused portion of a long-term credit facility.
Definition of "Commitment Fee" as a fee for investment loans
This definition connects "Commitment Fee" to investment financing.
"Commitment Fee" refers to the fee paid by the borrower for maintaining access to a credit facility for investment purposes, calculated on the unutilized balance.
Definition of "Commitment Fee" as a fee for equity funding
This definition links "Commitment Fee" to equity commitments.
"Commitment Fee" refers to the fee payable for maintaining a commitment to provide equity funding, usually calculated as a percentage of the undrawn amount.
Definition of "Commitment Fee" as a fee related to term loans
This definition applies "Commitment Fee" to term loans.
"Commitment Fee" means the fee assessed on the undrawn portion of a term loan facility, paid periodically throughout the loan term.
Definition of "Commitment Fee" as a fee for credit facility renewals
This definition ties "Commitment Fee" to facility renewals.
"Commitment Fee" refers to the fee charged to the borrower for renewing or extending a credit facility, typically calculated on the unused portion of the credit.
Definition of "Commitment Fee" as a fee for performance guarantees
This definition connects "Commitment Fee" to guarantees.
"Commitment Fee" refers to the fee payable for the issuance of a performance guarantee, based on the total guarantee amount or the undrawn portion.
Definition of "Commitment Fee" as part of a revolving credit agreement
This definition links "Commitment Fee" to revolving credit.
"Commitment Fee" refers to the fee associated with a revolving credit agreement, calculated as a percentage of the unutilized amount available under the agreement.
Definition of "Commitment Fee" as a fee for credit lines with a set duration
This definition applies "Commitment Fee" to fixed-duration lines.
"Commitment Fee" refers to the fee charged for maintaining a credit line with a fixed duration, calculated based on the unused balance over the term of the facility.
Definition of "Commitment Fee" as a cost of credit facility maintenance
This definition ties "Commitment Fee" to facility maintenance.
"Commitment Fee" means the cost of maintaining a credit facility, calculated based on the unused portion and due at regular intervals.
Definition of "Commitment Fee" as a fee charged by a lender
This definition connects "Commitment Fee" to lender obligations.
"Commitment Fee" refers to the fee assessed by the lender on the unused portion of a loan or credit facility to compensate for the availability of credit.
Definition of "Commitment Fee" as part of a bridge loan agreement
This definition links "Commitment Fee" to bridge financing.
"Commitment Fee" refers to the fee charged for the availability of a bridge loan facility, generally calculated on the undrawn portion.
Definition of "Commitment Fee" as a fee tied to lending agreements
This definition applies "Commitment Fee" to lending terms.
"Commitment Fee" refers to the fee payable to the lender in exchange for the commitment to provide credit under the terms outlined in the loan agreement.
Definition of "Commitment Fee" as a fee for standby loan arrangements
This definition ties "Commitment Fee" to standby loans.
"Commitment Fee" refers to the fee paid by the borrower for the availability of a standby loan, calculated on the unused loan amount.
Definition of "Commitment Fee" as a cost for borrowing readiness
This definition connects "Commitment Fee" to borrowing capacity.
"Commitment Fee" means the fee incurred by the borrower for ensuring the availability of funds for future borrowing, calculated as a percentage of the unused portion.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.