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December 3, 2014
Overdrafts: Latest Regulatory Feedback, Guidance & Best Practices Webinar
David Dickinson and Jerod Moyer

December 4, 2014
Freebies, Bonuses and Contests
John Burnett and Andy Zavoina

December 9, 2014
Bankruptcy: Creditor Do's and Don'ts
Sam Ott

December 10, 2014
Branch Audits: What Is Going On Out There?
Patricia Cashman

December 17, 2014
Integrated Disclosures - An Implementation Strategy
Mary Beth Guard and Jack Holzknecht

December 18, 2014
Loan Review Best Practices for a Community Bank
Bob Fritzlan

December 19, 2014
PREPAID PRODUCTS - Understanding the CFPB Proposal
John Burnett



Topic Options
#718833 - 04/19/07 02:15 PM Fee for Unused Portion Commercial Line of Credit
elcinoca Offline
Platinum Poster

Registered: 01/08/02
Posts: 533
Loc: Elizabeth City, NC
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

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Lending Compliance
#719114 - 04/19/07 09:00 PM Re: Fee for Unused Portion Commercial Line of Credit [Re: elcinoca]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50644
Loc: Galveston, TX
There are no Federal guidelines.
_________________________
The opinions expressed are my own, take them or leave them.

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#719394 - 04/20/07 12:03 PM Re: Fee for Unused Portion Commercial Line of Credit [Re: rlcarey]
elcinoca Offline
Platinum Poster

Registered: 01/08/02
Posts: 533
Loc: Elizabeth City, NC
Thanks Randy,

MarkB

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#719424 - 04/20/07 12:21 PM Re: Fee for Unused Portion Commercial Line of Credit [Re: elcinoca]
barney5 Offline
Junior Member

Registered: 03/09/07
Posts: 44
Loc: Kentucky
Most Financial Institutions refer to this as an Inactivity Fee.
_________________________
If you can't convince 'em, confuse 'em!

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#719435 - 04/20/07 12:28 PM Re: Fee for Unused Portion Commercial Line of Credit [Re: elcinoca]
barney5 Offline
Junior Member

Registered: 03/09/07
Posts: 44
Loc: Kentucky
Oops! I forgot to mention that some FIs refer to this as an Unadvanced Commitment Fee.
_________________________
If you can't convince 'em, confuse 'em!

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#719459 - 04/20/07 12:42 PM Re: Fee for Unused Portion Commercial Line of Credit [Re: barney5]
elcinoca Offline
Platinum Poster

Registered: 01/08/02
Posts: 533
Loc: Elizabeth City, NC
Thanks barney5 --

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

MarkB

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