The declaration of commitment describes the amount of attorney`s fees, all costs incurred during the preparation of loan documents, the amount of the loan, the interest rate in annual interest rateThe effective annual interest rate (AEOI) is the interest rate paid over a specified period. Simply put, the actual repayment terms and conditions, guarantees and closing conditions. A borrower can use the letter of commitment as proof to interested parties that they have a line of creditBank or line of credit (LOC) is a type of financing granted to an individual, business or public entity by a bank or other line of credit available for the acquisition of an asset. Interested parties have confidence that the borrower keeps the promise and buys the asset before the expiration of a fixed term. CONSIDERING that the guilty party and the due party wish to enter into an agreement under which the guilty party pays the party due the sum of the default of a payment plan, in accordance with the conditions contained therein. . . .