An additional line of credit provided to the issuer of commercial paper as a type of insurance plan to cover maturing notes in the event that they are unable to be replaced by selling new notes. By receiving this extra line of credit, the commercial paper issuer should be covered if losses occur, but most times the line of credit is less than the value of the original notes.
Related information about backup line:
- Backup Line Definition | Investopedia
A line of credit used by a bank to cover any issue of commercial paper for which financing from new paper may not be available. A backup line of credit ...
- Backup Line - Financial Dictionary - The Free Dictionary
A commercial paper issuer's bank line of credit covering maturing notes if, for some reason, selling new notes to cover the maturing notes is not possible.
- What is backup line? definition and meaning
Definition of backup line: An additional line of credit provided to the issuer of commercial paper as a type of insurance plan to cover maturing notes in the event ...
- Backup line Definition - NASDAQ.com
Backup line: read the definition of Backup line and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Backup Line of Credit Definition - NASDAQ.com
Backup Line of Credit: read the definition of Backup Line of Credit and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- Backup Line: Definition from Answers.com
Backup Line Bank line of credit serving as an alternate source of liquidity for an issuer of commercial paper, and a source of credit for the buyer, or.
- What Is a Backup Line?
Also known as a backup line of credit, a backup line is one form of a line of credit that can be used to cover the issue of any type of commercial paper.
- Backup Line Definition & Example | InvestingAnswers
We explain the definition of Backup Line provide a clear example of how it works and explain why it's an important concept in business, finance & investing.