CREDIT AGREEMENT Meaning and
Definition
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A credit agreement is a legally binding contract between two or more parties that outlines the terms and conditions for extending credit to a borrower. It is commonly used in various financial transactions, such as lending money, issuing credit cards, or providing other forms of credit. This agreement specifies the amount of credit that will be extended, the interest rate applicable, repayment terms, and any other relevant terms and conditions.
The credit agreement typically stipulates the rights and obligations of both the lender and borrower. It outlines the borrower's responsibility to repay the debt on time and in full, as well as the consequences for defaulting on the loan. The agreement may also include provisions for late payment fees, penalties, and potential legal action if the borrower fails to meet their obligations.
In addition to the financial terms, a credit agreement may include various provisions regarding the use of credit, such as restrictions on the borrower's ability to use the credit for certain purposes or requirements for maintaining a certain credit score or financial position. It may also outline the process for modifying the agreement, such as requesting an increase in the credit limit or restructuring the repayment terms.
Overall, a credit agreement serves as a legally binding document that protects the rights and interests of both parties by establishing clear terms and conditions for extending credit.
Common Misspellings for CREDIT AGREEMENT
- xredit agreement
- vredit agreement
- fredit agreement
- dredit agreement
- ceedit agreement
- cdedit agreement
- cfedit agreement
- ctedit agreement
- c5edit agreement
- c4edit agreement
- crwdit agreement
- crsdit agreement
- crddit agreement
- crrdit agreement
- cr4dit agreement
- cr3dit agreement
- cresit agreement
- crexit agreement
- crecit agreement
- crefit agreement
Etymology of CREDIT AGREEMENT
The word "credit" has its roots in the Latin word "creditum", which means "a loan, a thing entrusted to another". It comes from the verb "credere", meaning "to believe, to trust". The term "agreement" originated from the Latin word "agreementum", derived from "agreementus", which means "to please, to suit".
Therefore, the etymology of "credit agreement" suggests that it is an arrangement or contract based on trust and belief between parties involved, specifying the terms and conditions of a loan or credit transaction.
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