What action defines a loan commitment?

A loan commitment is primarily defined as a bank's promise to provide a specified amount of funds in the future, which aligns perfectly with this choice. Essentially, it is an agreement between a lender and a borrower whereby the lender commits to making a loan available to the borrower at a later date, subject to certain conditions. This commitment provides borrowers with assurance that they will have access to the funds when needed, offering important financial planning security.

The other choices do not capture the essence of what a loan commitment entails. Immediate disbursement of a loan refers to the actual provision of funds rather than a promise for future funding. Refinancing existing debts focuses on modifying terms of a current loan, which does not define a commitment to future lending. Lastly, a bank's decision to call in a loan refers to the action of demanding repayment of the loan before its due date, which is contrary to the idea of offering a funded loan. Thus, the correct definition of a loan commitment revolves around the agreement to provide funds in the future, making this choice accurate.