Which of the following is a committed line of credit with no fixed maturity?
A) a bridge loan
B) evergreen credit
C) a promissory note
D) a blanket lien

Question

Quizplus · Accepted Answer

Evergreen credit is a type of committed line of credit that has no fixed maturity. It is typically used by businesses to finance their ongoing operations and can be used repeatedly as long as the borrower continues to meet the lender's creditworthiness criteria. Choice A (bridge loan) is a short-term loan used to bridge the gap between two longer-term financing arrangements. Choice C (promissory note) is a written promise by a borrower to pay a specified sum of money to a lender at a future date or on demand. Choice D (blanket lien) is a type of security interest that gives a creditor the right to take possession of all of a debtor's assets in the event of default. None of these choices fit the description of a committed line of credit with no fixed maturity.

Which of the Following Is a Committed Line of Credit