clean-up

clean up (v.), clean-up (adj.),or cleanup (n.)

(1) An informal phrase used by lenders to describe a provision in loan documents, usually the promissory notes used for lines of credit. The clean-up provision requires that the loan balance outstanding under the line of credit be reduced, usually to zero, for a period of time, usually one or two months, with some specified frequency, usually annually.

Sometimes called an " out of debt requirement".

A clean-up requirement is particularly well suited to borrowers with significant seasonal fluctuations in sales.

(2) The unwinding of an asset-backed security when the remaining balance is very small is sometimes referred to as a clean-up call. American Banker Glossary

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clean-up ˈclean-up noun [countable]

when an organization is improved by removing parts or people that are not making money or are not effective or honest:

• A clean-up may require financial help from the World Bank.

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clean-up UK US (also cleanup) noun [C]

► ENVIRONMENT an act of removing harmful substances or chemicals from a place or the environment: »

Over $100 million was allocated for the cleanup of hazardous chemicals and radioactive waste.

► WORKPLACE an act of improving a company or system by removing people and stopping activities that are dishonest or causing problems: »

The cleanup involved foreclosing on thousands of problem loans and selling the properties that secured them.