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letter of comfort


from Wiktionary, Creative Commons Attribution/Share-Alike License

  • n. A type of letter popular in the 1980s addressed to a lender giving some type of reassurance about the position of a borrower (or prospective borrower). Such a letter is written by someone substantial such as a parent company or major shareholder, but is not a guarantee and usually not even a legally enforceable undertaking (making it in practice almost worthless, yet lenders at various times have found such letters comforting).


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