Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network



October 24
How to Audit Advertising - Compliance Issues Here, There, Everywhere!;
Patricia Cashman

October 29
Documenting an Applicant's Intent to be a Joint Applicant;
David Dickinson

November 4
Issues with Deceased Customers;
Mary Beth Guard and John Burnett

November 5
Vault Burglaries, Floods, Fires & Other Disasters;
Dave McGuinn

November 6
MLO v LO - Who Has to Do What?;
Jack Holzknecht and Mary Beth Guard

November 13
Domestic Violence & Workplace Violence: There Is A Link;
Shelly Collins and Dana Turner



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: 531
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

Top
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: 50412
Loc: Galveston, TX
There are no Federal guidelines.
_________________________
The opinions expressed are my own, take them or leave them.

Top
#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: 531
Loc: Elizabeth City, NC
Thanks Randy,

MarkB

Top
#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!

Top
#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!

Top
#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: 531
Loc: Elizabeth City, NC
Thanks barney5 --

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

MarkB

Top


Moderator:  Andy Z