Also known as the commitment period. It is a set period during which a borrower may draw down a loan.
In a term loan ( www.practicallaw.com/8-107-7382) , it is usually a relatively short period after signing the facility agreement. In a revolving facility ( www.practicallaw.com/5-107-7171) , the period extends, in general terms, throughout the life of the loan.
Typically, any commitment fees ( www.practicallaw.com/resource.do?item=:45068914) will accrue and be payable during this period.