Citigroup Inc.

Credit Commitments and Lines of CreditThe table below summarizes Citigroup’s credit commitments as of December 31, 2010 and December 31, 2009:In millions of dollarsU.S.December 31, 2010Outside ofU.S. TotalDecember 31,2009Commercial and similar letters of credit $ 1,544 $ 7,430 $ 8,974 $ 7,211One- to four-family residential mortgages 2,582 398 2,980 1,070Revolving open-end loans secured by one- to four-family residential properties 17,986 2,948 20,934 23,916Commercial real estate, construction and land development 1,813 594 2,407 1,704Credit card lines 573,945 124,728 698,673 785,495Commercial and other Consumer loan commitments 124,142 86,262 210,404 257,342Total $722,012 $222,360 $944,372 $1,076,738The majority of unused commitments are contingent upon customersmaintaining specific credit standards. Commercial commitments generallyhave floating interest rates and fixed expiration dates and may requirepayment of fees. Such fees (net of certain direct costs) are deferred and, uponexercise of the commitment, amortized over the life of the loan or, if exerciseis deemed remote, amortized over the commitment period.Commercial and similar letters of creditA commercial letter of credit is an instrument by which Citigroup substitutesits credit for that of a customer to enable the customer to finance thepurchase of goods or to incur other commitments. Citigroup issues a letteron behalf of its client to a supplier and agrees to pay the supplier uponpresentation of documentary evidence that the supplier has performed inaccordance with the terms of the letter of credit. When a letter of credit isdrawn, the customer is then required to reimburse Citigroup.One- to four-family residential mortgagesA one- to four-family residential mortgage commitment is a writtenconfirmation from Citigroup to a seller of a property that the bank willadvance the specified sums enabling the buyer to complete the purchase.Revolving open-end loans secured by one- to four-familyresidential propertiesRevolving open-end loans secured by one- to four-family residentialproperties are essentially home equity lines of credit. A home equity line ofcredit is a loan secured by a primary residence or second home to the extentof the excess of fair market value over the debt outstanding for the firstmortgage.Commercial real estate, construction and landdevelopmentCommercial real estate, construction and land development includeunused portions of commitments to extend credit for the purpose offinancing commercial and multifamily residential properties as well as landdevelopment projects.Both secured-by-real-estate and unsecured commitments are included inthis line, as well as undistributed loan proceeds, where there is an obligationto advance for construction progress payments. However, this line onlyincludes those extensions of credit that, once funded, will be classified asLoans on the Consolidated Balance Sheet.Credit card linesCitigroup provides credit to customers by issuing credit cards. The credit cardlines are unconditionally cancelable by the issuer.Commercial and other Consumer loan commitmentsCommercial and other Consumer loan commitments include overdraft andliquidity facilities, as well as commercial commitments to make or purchaseloans, to purchase third-party receivables, to provide note issuance orrevolving underwriting facilities and to invest in the form of equity. Amountsinclude $79 billion and $126 billion with an original maturity of less thanone year at December 31, 2010 and December 31, 2009, respectively.In addition, included in this line item are highly leveraged financingcommitments, which are agreements that provide funding to a borrower withhigher levels of debt (measured by the ratio of debt capital to equity capitalof the borrower) than is generally considered normal for other companies.This type of financing is commonly employed in corporate acquisitions,management buy-outs and similar transactions.282