This template is a letter agreement from a financial institution confirming an uncommitted line of credit to its borrower. This template includes practical guidance, drafting notes, and alternate and optional clauses. Under a line of credit that is uncommitted, the lender has the sole discretion as to whether to advance a loan to the borrower, regardless of whether the borrower has met all the conditions precedent to obtaining the advance. The lender has no obligation to lend and may refuse to fund any loan request under the uncommitted line of credit. Some banks and other depository financial institutions may be inclined to offer uncommitted facilities to avoid having to satisfy capital adequacy requirements imposed on such institutions in connection with committed facility assets. For detailed information on capital adequacy requirements on banks and other depository institutions, see Dodd-Frank Act Bank Capital Requirements and Basel III Risk-Based Capital Requirements. Uncommitted ...