Line of Credit Note wording

[Buddy Holmes]

I have an investor that wants a line of credit type note. He would like a fixed rate, 30 yr amortization when using funds.

That is fine but i would like some compensation when it is not drawn due to tying up the use of my money.

What would this "fee" be called?

Has any one done one like this?

What is a reasonable %, maybe 1 or 2%?

[Chris Seveney]

@Buddy Holmes

Here is language I use

Points.

Borrower agrees to pay to the order of Lender under this Promissory Note (this

“Note”), for each and every draw taken hereunder, a fee equal to THREE PERCENT (3%) of the total amount of the amount actually drawn.