Line of Credit Agreement Law and Legal Definition

According to 7 CFR 761.2 [Title 7 – Agriculture; Subtitle B Regulations of The Department of Agriculture; Chapter VII Farm Service Agency, Department of Agriculture; Subchapter D Special Programs; Part 761 General Program Administration; Subpart A General Provisions], Line of Credit Agreement is “a contract between the borrower and the lender that contains certain lender and borrower conditions, limitations, and responsibilities for credit extension and acceptance where loan principal balance may fluctuate throughout the term of the contract.”