| firm commitment 1) An undertaking by a bank to lend up to a maximum sum over a period at a specified rate; a commitment fee usually has to be paid by the borrower, which is not returned if the loan is not taken up. 2) An agreement in which an underwriter of a flotation in the USA assumes the risk that not all the securities issued will be sold, by guaranteeing to buy all the excess securities at the offer price. 3) A binding commitment to enter into an agreement. |