I've attempted a search, but to no avail. What is it called when a financial institution charges a fee for the unused portion of a Commercial LOC?

Also, other than state codes or statutes, are there any federal regulations or restrictions on imposing a fee for unused credit?

Thanks for your insight.

MarkB

There are no Federal guidelines.

Thanks Randy,

MarkB

Most Financial Institutions refer to this as an Inactivity Fee.

Oops! I forgot to mention that some FIs refer to this as an Unadvanced Commitment Fee.

Thanks barney5 --

That may increase my hits on a search of the topic.

MarkB