Exercised Line of Credit

A line of credit is an arrangement under which liabilities may be created.  As a general matter, the mere fact that you have a line of credit arrangement (e.g., a plan or arrangement permitting you to borrow a certain amount of money) does not necessarily require the “line of credit” plan or arrangement to be reported.  You have a reportable liability when you have actually borrowed money or exercised the borrowing authority under the line of credit arrangement.