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Also known as a loan or credit facility agreement or facility letter. An agreement or letter in which a lender (usually a bank or other financial institution) sets out the terms and conditions (including the conditions precedent) on which it is prepared to make a loan facility available to a borrower.
Section 1003.2(d) defines a closed-end mortgage loan as an extension of credit that is secured by a lien on a dwelling and that is not an open-end line of credit under § 1003.2(o).
A line of credit (LOC) is a preset borrowing limit that can be tapped into at any time. The borrower can take money out as needed until the limit is reached. As money is repaid, it can be borrowed again in the case of an open line of credit.
(q) Extend credit and extension of credit mean the granting of credit in any form (including, but not limited to, credit granted in addition to any existing credit or credit limit; credit granted pursuant to an open-end credit plan; the refinancing or other renewal of credit, including the issuance of a new credit card ...
Extension of Credit means the right to defer payment of debt or to incur debt and defer its payment offered or granted primarily for personal, family, or household purposes. Alright, it's a loan.
Regulation O regulates the credit extensions that member banks can offer to their "insiders." Regulation O requires that banks report any extensions provided to insiders in their quarterly reports. Regulation O defines bank insiders as directors or trustees of a bank, executive officers, or principal shareholders.
A creditor is an individual or institution that extends credit to another party to borrow money usually by a loan agreement or contract.
Also, extend someone credit. Allow a purchase on credit; also, permit someone to owe money. For example, The store is closing your charge account; they won't extend credit to you any more, or The normal procedure is to extend you credit for three months, and after that we charge interest.