A revolving credit agreement and a line of credit are nearly identical, with the exception that the bank becomes legally obligated when it agrees to a line of credit.

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Tamilzharsan David · Accepted Answer

Final Answer : False, Explanation :  The statement is incorrect. A line of credit and a revolving credit agreement are not identical. A line of credit is a type of revolving credit, but in a revolving credit agreement, the bank is also legally obligated to provide funding.

A revolving credit agreement and a line of credit are nearly identical, with the exception that the bank becomes legally obligated when it agrees to a line of credit.

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