cleanup period
Definition
US banking practice in which a customer is required to manage 30 or 60 days without an overdraft (line of credit) facility before its annual renewal. The objective is to demonstrate that the short-term loan has not turned into 'hard core' debt and, therefore, bank's exposure has not increased. Also called paydown period.
cleanup period is in the Banking, Commerce & Finance subject.
cleanup period appears in the definitions of the following terms: overdraft and paydown period
This content can be found on the following page:
http://www.businessdictionary.com/definition/cleanup-period.html
email to a friend
print this definition
cite this definition
link to this page
