Business, Legal & Accounting Glossary
An additional line of credit provided to the issuer of commercial paper as a type of insurance plan to cover maturing notes in the event that they are unable to be replaced by selling new notes. By receiving this extra line of credit, the commercial paper issuer should be covered if losses occur, but most times the line of credit is less than the value of the original notes.
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This glossary post was last updated: 20th November, 2021 | 0 Views.