RL Bank signifies a specific type of bank in a lending context.
Understanding RL Bank
According to the reference, RL Bank means at any time each Bank with a Revolving Loan Commitment or with outstanding Revolving Loans. In simpler terms, it refers to:
- Any bank that has committed to providing a revolving loan.
- Any bank that currently has revolving loans outstanding to a borrower.
This definition is typically used in legal or financial agreements related to revolving credit facilities.
Key Components
To fully grasp the definition, it's essential to understand the individual components:
- Bank: A financial institution.
- Revolving Loan Commitment: The bank's contractual obligation to provide a revolving loan up to a certain amount.
- Revolving Loans: A type of loan where the borrower can borrow, repay, and re-borrow funds up to a credit limit.
Example
Imagine a company secures a revolving credit facility from several banks. All those banks are considered "RL Banks" because they have committed to providing revolving loans. Even if the company hasn't borrowed the full amount, the banks with the commitment are still RL Banks. Once the company borrows funds under the revolving credit facility, the banks that provided those funds are also RL Banks.
