By the way, this happens to boards of directors, too. One board that I was on was presented by the general manager with two options for unsecured loans to cover temporary cash flow shortfalls (e.g. to cover payroll when cash on hand was too low). The options presented were a low interest rate loan that applied to the full credit amount whether or not we used it, and a higher interest rate that applied only to the amount borrowed. The obvious choice was the second one, because the intent was to only borrow what was needed when it was needed, not to borrow the full amount (like maxing out a credit card). Clearly, the general manager was attempting to influence the loan that the board chose.