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

Registered: 01/08/02
Posts: 537
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: 53648
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: 537
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: 537
Loc: Elizabeth City, NC
Thanks barney5 --

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

MarkB

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