All statements about loan commitments are true except for: A loan commitment is a contractual agreement for a bank to lend a borrower up to a predetermined amount for a specific time period under terms outlined in the loan agreement. Only the amount drawn appears on the balance sheet. The unfunded portion is an OBS asset Some borrowers will be charged fees such as an upfront loan fee and an non- usage fee The bank has the right to cancel the commitment at any time if the borrower does not use the full amount of the commitment