What type of fee is charged on the unused part of the credit facility?

The correct choice regarding the fee charged on the unused part of a credit facility is the commitment fee. This fee is assessed to compensate lenders for the funds that have been committed to the borrower but have not been drawn down. Essentially, it serves as a cost for keeping the capital available for the borrower, ensuring that the lender receives some form of remuneration for reserving that liquidity.

This fee is typically calculated as a percentage of the undrawn portion of the total credit facility and is often incurred on a quarterly or annual basis. It helps to incentivize borrowers to utilize the facility efficiently while providing lenders with a guaranteed income on their capital.

In contrast, a utilization fee usually applies when there's a balance drawn on the credit line, charging based on the amount used rather than the amount that remains undrawn. A facility fee is often a flat fee paid for the privilege of having the loan facility available, not specifically tied to the unused portion. Closing fees are typically one-time charges incurred at the inception of a loan agreement, covering initial costs related to the transaction process.

Thus, the commitment fee correctly addresses the specific context of fees related to the unused portion of the facility.