A "firm commitment underwriting" is typically an arrangement in which an underwriter agrees to sell securities to the public. Under a firm commitment, the underwriter buys all of the available securities to be issued and thus is stuck with any unsold securities. Firm commitment underwriting can also refer to a method of underwriting loans in which a lender commits to fund a loan with a given time period, provided certain conditions specified by the lender are met. This is also sometimes referred to as a standby loan commitment.