commitment fee
Definition
Lender's fee for giving a written undertaking (commitment letter) to hold a specified amount of loan amount for a borrower. Charged annually, this fee usually ranges from 0.25 percent to 1.50 percent of the promised amount. See also commitment.
commitment fee is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
commitment fee appears in the definitions of the following terms: loan commitment, catastrophe equity put option, commitment, finance charges and commitment letter
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