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April 22
A Banker's Guide to Virtual Currency
Andrew Beal

April 24
BSA/AML Compliance: Writing the SAR Narrative
Ken Golliher

April 29
HSA Basics
Whitney Johnson

April 29
Required Training for Loan Originators
Mary Beth Guard and Jack Holzknecht

May 13
Overdraft Practices in Today's Regulatory Environment
John Burnett

May 14
Reg E Claims - Allocating Liability Correctly
Andy Zavoina



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

Registered: 01/08/02
Posts: 525
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: 48556
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 Online
Platinum Poster

Registered: 01/08/02
Posts: 525
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 Online
Platinum Poster

Registered: 01/08/02
Posts: 525
Loc: Elizabeth City, NC
Thanks barney5 --

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

MarkB

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