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
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