Utilisation Facility Agreement
The fee may be calculated by applying to the borrower a specified interval during which the outstanding balance is greater than a specified threshold in relation to the total credit line. Usage fees and their terms may vary depending on the type of credit or loan used and by the lender. The currency indicated in the usage requirement must be in U.S. dollars. If all borrowers use almost all of the credit they have, lenders could be stretched to meet demand consistently. By levying user fees, a lender can create capital flows to maintain its operations, while incentivizing borrowers to reduce or eliminate their outstanding balances in order to avoid payment of those fees. . . .