Evergreen Loan

"An evergreen loan refers to a revolving-type line of credit or credit facility where borrowers are able to borrow continually under the facility as long as borrowing limits are not breached and other terms are honoured, including collateral requirements as appropriate. An evergreen Letter of Credit is an L/C that automatically extends at the end of its term (usually one year) – unless some of its requirements have not been met or for any other reason the bank wants to cancel the facility."