Definition Of Open End Credit
Definition Of Open End Credit. The maximum borrowing power granted to a person from a financial institution. And (iii) the amount of credit that may be extended to the consumer during the term of the plan (up to any.
Also called a charge account or An arrangement for borrowing from a bank where money can be taken and paid back up to an agreed…. Instead, it allows them to repeatedly utilize the money and make timely payments before the limit is attained.
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd.
Also called a charge account or The preapproved amount will be set out in the agreement between the lender and the borrower. Charge account credit, revolving credit.
(Ii) The Creditor May Impose A Finance Charge From Time To Time On An Outstanding Unpaid Balance;
A consumer credit line that can be used up to a certain limit or paid down at any time. Copyright 2005, 1997, 1991 by random house, inc. May be used repeatedly up to a certain limit;
And (Iii) The Amount Of Credit That May Be Extended To The Consumer During The Term Of The Plan (Up To Any Limit Set By The.
(i) the creditor reasonably contemplates repeated transactions; The term does not include negotiated advances under an open end real estate mortgage or letter of credit. An arrangement for borrowing from a bank where money can be taken and paid back up to an agreed….
This Agreement Is Fairly Common In Situations In Which A Business Must Make Payroll But Does Not Always Have The Operating Incometo Do So, Especially When Its Operating Income Is Seasonal Or Otherwise Varies From Month To Month.
Charge account credit, revolving credit. The borrower is able to withdraw indefinitely until the limit is met. In contrast to more traditional loans, which are given.
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Instead, it allows them to repeatedly utilize the money and make timely payments before the limit is attained. (j) the terms “open end credit plan” and “open end consumer credit plan” mean a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. Line of credit denotes a limit of credit extended by a bank to a customer, who can avail himself or herself of its full extent in dealing with the bank but cannot exceed this limit.
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