Definition: is an authority, which will put an organization or a company into debt, allowing it to borrow funds from another organization or a bank. This authority is usually granted to the company’s officers and is typically passed by the shareholders’ resolution. Oftentimes, the lender would provide the resolution documents in advance, which the borrower (the board of the company’s directors) would fill out and sign.
In a Sentence:
The resolution to borrow is one of the corporate resolutions we may take advantage of.
Because we’ve been experiencing lack of capital, the board of directors passed the resolution to borrow from the Central Bank.
The resolution to borrow will also ensure the safety of all the transactions between our company and the bank.
Synonyms and related words: resolution, written resolution, borrowing resolution, general agreements to borrow, shareholder, debt, lender, borrower