credit agreement


Legal contract entered into by a financial institution and a debtor when he/she accepts a loan. The contract spells out all the conditions of the loan including repayment terms, corresponding interest rates, and other relevant information for the debtor. A credit agreement only holds the parties listed on the contract responsible for the loan unless otherwise stated in the terms and conditions. Depending on the type of loan, the credit agreement may be very extensive. For instance, a mortgage loan credit agreement is far more detailed than one for a credit card.

Use credit agreement in a sentence

You should only enter in to a credit agreement with a party that you know will be able to pay you back.

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Stacey made sure to thoroughly read through her credit agreement so that she fully understood the terms of her loan.

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It was right there, in the 50th line of the small print of the credit agreement: Bank of America was, in fact, very much entitled not only to his first born, but his second and third born children, as well.

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regulated consumer credit agreement credit sleeve