margin of credit

margin of credit
The amount of credit which a merchant will extend to a customer over and above a fixed limit in the latter's indebtedness to the merchant upon account, it being understood that the indebtedness will be kept within such limit by payments upon the account from time to time. Schaffran v Mount Vernon-Woodbury Mills (CA3 NJ) 70 F2d 963, 94 ALR 543; Schneider-Davis Co. v Hart, 23 Tex Civ App 529, 530, 57 SW 903.

Ballentine's law dictionary. . 1998.

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