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By extending credit, a bank essentially trusts borrowers to repay the principal balance as well as interest at a later date. Whether someone is approved for credit and how much they receive is based on the assessment of their creditworthiness.
As it involves an extension of credit by the issuing bank, the application process is similar to the process of obtaining any loan. Moreover, as the standby letter of credit involves a possible contingent payment in the future, many issuers require that the standby letter of credit be cash collateralized.
Revolving credit remains open until the lender or borrower closes the account. A non-revolving line of credit, on the other hand, is a one-time arrangement, and when the credit line is paid off, the lender closes the account.
Term Extension means, for any Lease, an extension of the payment term by the Servicer in accordance with the Credit and Collection Policy, by increasing the number of Total Payments due and extending the term of the Lease for an additional month for each additional Total Payment. Sample 1Sample 2Sample 3.
Extension of Credit means the right to defer payment of debt or to incur debt and defer its payment offered or granted primarily for personal, family, or household purposes.

People also ask

(c) Non-interest-bearing deposits to the credit of a bank are not considered loans, advances, or extensions of credit to the bank of deposit; nor is the giving of immediate credit to a bank upon uncollected items received in the ordinary course of business considered to be a loan, advance or extension of credit to the
More Definitions of Credit Extension Credit Extension is any Advance or any other extension of credit by Bank for Borrowers benefit. Credit Extension means the making of a Loan or the issuing of a Letter of Credit. Credit Extension means the making of a Loan.
Request for Extension of Credit means a written request substantially in the form of Exhibit A duly completed and signed by a Responsible Officer, or a telephonic request followed by such a written request, in each case delivered to Administrative Agent by Requisite Notice.
A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds.
Revolving credit remains open until the lender or borrower closes the account. A non-revolving line of credit, on the other hand, is a one-time arrangement, and when the credit line is paid off, the lender closes the account.

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