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commitment fee

British  

noun

  1. a charge made by a bank, in addition to interest, to make a loan available to a potential borrower

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

In addition, Thailand must pay 0.15% per year as a commitment fee, which locks in the lending terms as long as there are undisbursed funds.

From Seattle Times

In addition, Thailand must pay 0.15% per year as a commitment fee, which locks in the lending terms as long as there are undisbursed funds.

From Washington Times

A 50bp commitment fee is included for tickets of at least $150 million on the secured tranche and 25bp for all other ticket sizes.

From Reuters

The loans are more flexible and are being launched now as investors will earn a commitment fee on the bridge loan and a ticking fee on the Term Loan B before the deal closes, the person familiar with the situation said.

From Reuters

The unsecured tranche has a 75bp commitment fee for tickets of at least $50 million and 50bp for all other commitments.

From Reuters