Uncommitted credit facility

{
  "id": "MLC-T-LAW-005032",
  "term": "Uncommitted credit facility",
  "field": "Law",
  "definition": "A lending arrangement where a bank or financial institution offers a line of credit to a borrower but is not legally obligated to advance funds. The lender retains the discretion to approve or deny each draw request. This type of facility provides flexibility for both parties but offers less certainty for the borrower compared to a committed facility.",
  "url": "https://mlchart.com/terminology/law/uncommitted-credit-facility/"
}