Payoff Letter (Continuing Letters of Credit) | Practical Law
This is a standard form of payoff letter, specifically for use in situations where there are continuing letters of credit. A payoff letter is typically requested by a borrower from its lender in connection with the repayment of the borrower's outstanding loans to the lender and termination of the loan agreement. If letters of credit were issued under the loan agreement that survive its termination, the payoff letter must reflect this and include provisions addressing ongoing matters relating to the continuing letters of credit. This standard document has integrated notes with important explanations and drafting and negotiating tips.