Fully Funded Term Loan Definition | Law Insider (2024)

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Fully Funded Term Loan Definition | Law Insider (2024)

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Fully Funded Term Loan Definition | Law Insider? ›

Fully Funded Term Loan means a Loan that is fully funded as of the applicable Cutoff Date and the Obligor thereunder has no rights to re-borrow amounts repaid.

What is a fully funded term loan? ›

Fully funded means having enough money to pay for everything that needs to be paid for, even if something goes wrong and there isn't any more money coming in. It can also mean that a requirement for money has been completely met and paid for.

What does it mean to be fully funded? ›

What Is Fully Funded? Fully funded is a description of a pension plan that has sufficient assets to provide for all the accrued benefits it owes and can thus meet its future obligations.

What is a loan definition law insider? ›

Loan means an extension of credit by a Lender to the Borrower under Article II in the form of a Term Loan, a Revolving Credit Loan or a Swing Line Loan.

What is a term loan funding? ›

A term loan provides borrowers with a lump sum of cash upfront in exchange for specific borrowing terms. Borrowers agree to pay their lenders a fixed amount over a certain repayment schedule with either a fixed or floating interest rate.

What is the difference between funded and unfunded term loans? ›

Corporate debt can be categorized as either funded or unfunded. While funded debt is a long-term borrowing, unfunded debt is a short-term financial obligation that comes due in a year or less.

What is a synonym for fully funded? ›

Synonyms: finance , bankroll, pay for, endow, subsidize, subsidise (UK), put up the money for, provide the finances for, provide the capital for, capitalize. Sense: Noun: money set aside for sth.

What is the full funding rule? ›

Under the full-funding concept, funds are provided at the outset for the total estimated cost of an item. The concept best applies to major procurements. As used by the Department of Defense, however, it does not provide funding for an entire program in a given year.

What does "fully funded" mean in real estate? ›

The Fully Funded tag means that all of the equity on this property has been purchased and no longer available to invest in. Note: Often times a property can move in and out of being fully funded due to immediate cancellations or investor bank errors that take place.

What is a fully funded contract? ›

(a) If the contract is fully funded, funds are obligated to cover the price or target price of a fixed-price contract or the estimated cost and any fee of a cost-reimbursem*nt contract.

Who must approve the loan for an insider loan requiring prior approval? ›

Banks should note that, with respect to loans that are subject to Regulation O's “prior board approval” requirement (12 CFR 215.4(b)), a majority of the entire board must approve the loan. Independence and unbiased decision making are important aspects of the duty of loyalty.

Who must approve an insider loan? ›

Further, any loan to an insider of an amount more than $25,000 or 5 percent of unimpaired capital and surplus, whichever is higher, must be preapproved by a majority vote of the board of directors, and the insider must abstain from the approval process.

What is the legal definition of financing? ›

Legal Definition

financing. noun. fi·​nanc·​ing. : the act or process or an instance of raising or providing funds. also : the funds thus raised or provided.

What is the difference between a loan and a term loan? ›

Repayment: Being a short-term funding options, a working capital loan has a very flexible repayment period/tenure. Meanwhile, term loans come with relatively longer repayment tenures. Amount: Term loans involve bigger amounts, hence the extended repayment period.

What are 3 types of loans based on term? ›

These factors influence the term loan interest rates. There are three types of term loans, namely, short term loans, intermediate term loans, and long term loans.

What is a term loan in simple terms? ›

A term loan is a one-time lump sum of cash that's repaid with interest over a set period of time, or term.

What does fully funded mean in real estate? ›

The Fully Funded tag means that all of the equity on this property has been purchased and no longer available to invest in. Note: Often times a property can move in and out of being fully funded due to immediate cancellations or investor bank errors that take place.

What is the difference between loan amount and funded amount? ›

Why Is My Loan Amount and Amount Financed Different? The amount financed is the loan amount applied for, minus the prepaid charges. The amount financed may be lower than the amount you applied for because it represents a net figure: it's equal to your loan amount minus any prepaid fees.

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