User fees and conditions may vary depending on the type of credit or loan used and the lender. Payment can be made on an annual basis, but the fee could be based on a quarterly or even daily assessment of the outstanding. The fee can be calculated by calculating to the borrower, for a specified interval, that the remaining balance payable is above a fixed threshold in relation to the total line of credit. The currency indicated in the usage requirement must be the U.S. dollar. The borrower can only apply for use if the lender has received all of the documents and other evidence listed in Schedule 1 (previous conditions) that are satisfactory to the lender. Therefore, if a borrower has a $2 million line of credit with a user fee clause with a 50% threshold and the remaining balance has exceeded $1 million for three days, he or she would be liable for a user fee based on that period. If the outstanding amount has remained below this threshold, the borrower cannot be liable for a user fee, at least not at the same rate.
Some clauses set the outstanding threshold at 33.3% of the total commitment, while others may set it at 50% before user charges are triggered. Use charges can even be charged on the balance of the outstanding, regardless of the percentage relative to the total amount of the line of credit or loan.