The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

CLEANUP PERIOD Definition & Legal Meaning

Definition & Citations:

30 or 60 day period given to a customer who must have no overdrafts to receive annual renewal of a line of credit as an overdraft protection. US banking practice. The time allowed allows the customer to demonstrate that the short-term loan has not turned into ‘hard core’ debt, reducing the bank’s exposure. Known also as pay down period.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.