L/C Borrowing definition: Copy, customize, and use instantly
Introduction
The term "L/C Borrowing" refers to an advance made under a letter of credit facility when a drawing is made on a letter of credit that has not been reimbursed by the borrower. It is essential for defining the rights and obligations of borrowers and lenders in connection with letter of credit transactions, ensuring clarity on repayment, interest, and financial responsibilities.
Below are various examples of how "L/C Borrowing" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "L/C Borrowing" as a letter of credit advance
This definition ties "L/C Borrowing" to an unreimbursed letter of credit draw.
"L/C Borrowing" means a borrowing that results from a drawing under a letter of credit that has not been reimbursed by the borrower, which is treated as a loan under the applicable credit agreement.
Definition of "L/C Borrowing" as an obligation under a credit facility
This definition connects "L/C Borrowing" to financial liabilities under a loan agreement.
"L/C Borrowing" refers to any advance made by the lenders to cover amounts drawn under a letter of credit, which remains outstanding until repaid by the borrower.
Definition of "L/C Borrowing" as a temporary loan
This definition links "L/C Borrowing" to short-term financing.
"L/C Borrowing" means any loan created by a draw on a letter of credit that remains unpaid, treated as an obligation of the borrower under the loan facility until reimbursement is made.
Definition of "L/C Borrowing" as a financial liability
This definition applies "L/C Borrowing" to repayment obligations.
"L/C Borrowing" refers to an amount advanced by the lenders upon a letter of credit draw that has not been reimbursed, accruing interest as per the loan terms.
Definition of "L/C Borrowing" as a contingent obligation
This definition ties "L/C Borrowing" to contingent liabilities.
"L/C Borrowing" means any outstanding amount drawn under a letter of credit for which the borrower is responsible until full reimbursement is made.
Definition of "L/C Borrowing" as a lender-funded obligation
This definition connects "L/C Borrowing" to lender-funded advances.
"L/C Borrowing" refers to any amount advanced by lenders to satisfy a letter of credit draw, which the borrower must repay under the agreed loan terms.
Definition of "L/C Borrowing" as an interest-bearing advance
This definition links "L/C Borrowing" to accrual of interest.
"L/C Borrowing" means an unpaid amount drawn under a letter of credit that accrues interest at the applicable loan rate until reimbursed by the borrower.
Definition of "L/C Borrowing" as an extension of credit
This definition applies "L/C Borrowing" to additional borrowing capacity.
"L/C Borrowing" refers to any funds disbursed under a letter of credit draw, constituting an extension of credit that remains outstanding until reimbursed.
Definition of "L/C Borrowing" as a revolving credit facility component
This definition ties "L/C Borrowing" to a revolving credit structure.
"L/C Borrowing" means any advance resulting from a letter of credit draw, which may be repaid and reborrowed subject to the terms of the credit facility.
Definition of "L/C Borrowing" as an obligation under a reimbursement agreement
This definition connects "L/C Borrowing" to the borrower's repayment duty.
"L/C Borrowing" refers to any unpaid letter of credit draw that the borrower is obligated to reimburse, subject to the interest and repayment terms of the credit agreement.
Definition of "L/C Borrowing" as a short-term working capital loan
This definition links "L/C Borrowing" to working capital financing.
"L/C Borrowing" means a temporary advance created when a letter of credit is drawn and remains unpaid, intended to cover short-term operational needs.
Definition of "L/C Borrowing" as a facility-funded disbursement
This definition applies "L/C Borrowing" to a lender’s funding responsibility.
"L/C Borrowing" refers to the disbursement of funds by the lender upon a letter of credit draw, which the borrower must repay as per the loan agreement.
Definition of "L/C Borrowing" as a bank-funded obligation
This definition ties "L/C Borrowing" to bank liability settlement.
"L/C Borrowing" means any funds paid by the bank under a letter of credit, treated as an obligation of the borrower until reimbursed.
Definition of "L/C Borrowing" as a liability under a syndicated loan agreement
This definition connects "L/C Borrowing" to syndicated credit facilities.
"L/C Borrowing" refers to any advance made by one or more lenders to fund a letter of credit draw, which is repaid under the terms of the syndicated credit facility.
Definition of "L/C Borrowing" as a debt obligation under financial agreements
This definition links "L/C Borrowing" to corporate debt management.
"L/C Borrowing" means any drawn but unreimbursed amount under a letter of credit, treated as an outstanding obligation of the borrower.
Definition of "L/C Borrowing" as an extension of financial credit
This definition applies "L/C Borrowing" to secured financial lending.
"L/C Borrowing" refers to a financing arrangement where lenders advance funds for a letter of credit draw, subject to repayment and interest accrual.
Definition of "L/C Borrowing" as a commercial financing tool
This definition ties "L/C Borrowing" to business loan arrangements.
"L/C Borrowing" means an amount outstanding due to a letter of credit draw, considered a loan until the borrower fulfills the repayment obligation.
Definition of "L/C Borrowing" as a funding source for international trade
This definition connects "L/C Borrowing" to trade finance.
"L/C Borrowing" refers to an advance made under a letter of credit, ensuring payment obligations are met in international transactions until reimbursed.
Definition of "L/C Borrowing" as a bridge financing mechanism
This definition links "L/C Borrowing" to temporary funding needs.
"L/C Borrowing" means a short-term credit facility provided by lenders to cover letter of credit draws, subject to repayment terms outlined in the loan agreement.
Definition of "L/C Borrowing" as an interim financing arrangement
This definition ties "L/C Borrowing" to a temporary financial solution.
"L/C Borrowing" refers to a short-term advance resulting from a letter of credit draw, intended to be repaid promptly under the facility agreement.
Definition of "L/C Borrowing" as an unsecured credit obligation
This definition links "L/C Borrowing" to credit risk management.
"L/C Borrowing" means any outstanding amount under a letter of credit that is treated as an unsecured loan until repayment is made by the borrower.
Definition of "L/C Borrowing" as a contingent liability of the borrower
This definition applies "L/C Borrowing" to potential debt obligations.
"L/C Borrowing" refers to any unpaid draw under a letter of credit, classified as a contingent liability of the borrower until reimbursed.
Definition of "L/C Borrowing" as a revolving credit utilization
This definition ties "L/C Borrowing" to credit facility usage.
"L/C Borrowing" means any amount disbursed under a letter of credit that constitutes a borrowing under the revolving credit facility.
Definition of "L/C Borrowing" as an instrument for payment facilitation
This definition connects "L/C Borrowing" to financial settlement mechanisms.
"L/C Borrowing" refers to an advance provided by lenders to honor a letter of credit draw, ensuring payment obligations are met.
Definition of "L/C Borrowing" as an obligation subject to loan terms
This definition links "L/C Borrowing" to regulatory compliance.
"L/C Borrowing" means any outstanding draw under a letter of credit that is subject to interest, repayment, and other terms set forth in the loan agreement.
Definition of "L/C Borrowing" as a structured financing arrangement
This definition applies "L/C Borrowing" to complex financial agreements.
"L/C Borrowing" refers to any loan created by a letter of credit draw, structured within the terms of the borrower’s financing agreement.
Definition of "L/C Borrowing" as an obligation under secured lending
This definition ties "L/C Borrowing" to collateralized financing.
"L/C Borrowing" means an amount advanced under a letter of credit that may be secured by collateral and repaid under agreed-upon terms.
Definition of "L/C Borrowing" as a financing tool for operational liquidity
This definition connects "L/C Borrowing" to liquidity management.
"L/C Borrowing" refers to an advance made to fulfill a letter of credit draw, ensuring operational liquidity for the borrower.
Definition of "L/C Borrowing" as a contractual funding mechanism
This definition links "L/C Borrowing" to contractual loan structures.
"L/C Borrowing" means a loan arising from a letter of credit draw, governed by the terms of the facility agreement between the borrower and lenders.
Definition of "L/C Borrowing" as a short-term liquidity facility
This definition applies "L/C Borrowing" to immediate cash flow solutions.
"L/C Borrowing" refers to a temporary credit arrangement where lenders provide funds for a letter of credit draw, pending borrower reimbursement.
Definition of "L/C Borrowing" as an obligation under a multi-bank facility
This definition ties "L/C Borrowing" to syndicated banking arrangements.
"L/C Borrowing" means any unpaid amount drawn under a letter of credit that is funded by one or more participating lenders in a multi-bank facility.
Definition of "L/C Borrowing" as a source of emergency financing
This definition connects "L/C Borrowing" to contingency planning.
"L/C Borrowing" refers to an advance under a letter of credit that provides emergency funding to cover payment obligations until reimbursed.
Definition of "L/C Borrowing" as a financial commitment under a credit agreement
This definition links "L/C Borrowing" to formal lending commitments.
"L/C Borrowing" means an outstanding amount under a letter of credit that represents a financial commitment of the borrower under its credit facility.
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.