Cleanup clause
Cleanup clause is a clause in a line of credit that requires the borrower to reduce the loan balance to zero at least once a year.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Cleanup clause. A clause in a line of credit that requires the borrower to reduce the loan balance to zero at least once a year.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
