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Categories: Economics & Finance
An arrangement between a financial institution, usually a bank, and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain. The borrower can draw down on the line of credit at any time, as long as he or she does not exceed the maximum set in the agreement.
(Read more: http://www.investopedia.com/terms/l/lineofcredit.asp#ixzz2JYfFG3pK)
