The provision in short-term credit agreements that require customers to be out of debt for 30 to 45 days each year is referred to as a:

A) loan payoff requirement.
B) clean-up requirement.
C) debt free period requirement.
D) solvency period requirement.

Clean-Up Requirement

A term often used in banking, referring to a requirement that a borrower must pay down a line of credit to zero or to a specific level at least once within a certain period.

Loan Payoff Requirement

The terms or conditions under which a borrower is obliged to repay the principal and interest on a loan.

Debt Free Period

A timeframe during which an individual or organization has fully paid off all outstanding debts, owing no money to creditors.