Business and Personal Finance Dictionary

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• CLEAN UP OR CLEANUP
  
  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.
  
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