Clean up clause in rtf

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How to clean up clause in rtf

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What is a clean up clause?

A cleanup clause is a contractual provision in a loan agreement which provides that all loans must be repaid within a specified period, after which no further loans will be made available to the debtor for a specified cleanup period. It may also refer to revolving line of credit. Cleanup clause - Wikipedia Wikipedia wiki Cleanupclause Wikipedia wiki Cleanupclause

What is the clean up provision of a loan?

The clean-up provision requires that the loan balance outstanding under the line of credit be reduced, usually to zero, for a period of time, usually one or two months, with some specified frequency, usually annually. Sometimes called an out of debt requirement.

What is the revolving loan clean up clause?

A business that carries a clean-up clause on its revolving loan will have to periodically keep that balance at zero for a certain period of time. That means, money that could be used to help grow the business will have to go to pay down any outstanding debt on the loan, which would slow business growth. Clean-Up Requirement: What it Means, How it Works Investopedia Definitions A - M Investopedia Definitions A - M

What is an example of a clean up clause?

Contractor shall keep the worksite clean and free from debris. At completion of work and prior to requesting final inspection, the Contractor shall remove all traces of waste materials and debris resulting from the work. Final payment will not be made if cleanup has not been performed.

What is the clean up period for a loan agreement?

Key Takeaways An annual-clean up is a banking practice that requires a borrower to pay off all balances on any renewable lines of credit and keep them at zero for a specified period of time. The time frame that a borrower must keep balances at zero usually ranges from 30 to 60 days and can even stretch to 90.

What is the 30 day clean up period?

The clean-up period is a specified period (usually 30 days) during the term of the loan in which the borrower is required to pay off the loan. While this requirement is becoming less common, it provides the branch with proof that the borrower is not dependent on the lender for permanent financing.

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