comfort letter

Definitions

1. Banking: Informal letter from a bank indicating its willingness to support a customer with a short-term loan, if and when required. It is not a letter of commitment.

2. Corporate affairs: Parent-firm's letter, issued to reassure a subsidiary-firm's lender or supplier, that it would support the subsidiary in case of financial difficulties. Specific terminology used in the letter determines whether such assurance constitutes a binding contract or only a moral obligation. A comfort letter, however, does signify that the loan request is authorized, is in order, and that the parent firm will keep a careful eye on the entire transaction. Also called letter of comfort, it may also be issued by a government to back up the obligations of its agencies.

3. Governmental affairs: Federal- or state- government's assurance (to the lender or supplier of a public agency or enterprise) that it will support the agency in timely settlement of its obligations.

单词	comfort letter
释义	comfort letter Definitions 1. Banking: Informal letter from a bank indicating its willingness to support a customer with a short-term loan, if and when required. It is not a letter of commitment. 2. Corporate affairs: Parent-firm's letter, issued to reassure a subsidiary-firm's lender or supplier, that it would support the subsidiary in case of financial difficulties. Specific terminology used in the letter determines whether such assurance constitutes a binding contract or only a moral obligation. A comfort letter, however, does signify that the loan request is authorized, is in order, and that the parent firm will keep a careful eye on the entire transaction. Also called letter of comfort, it may also be issued by a government to back up the obligations of its agencies. 3. Governmental affairs: Federal- or state- government's assurance (to the lender or supplier of a public agency or enterprise) that it will support the agency in timely settlement of its obligations.
随便看	time element insurance time frame time horizon time immemorial time interest earned (TIE) time is of the essence time limit on certain defenses time limit order time limits time loan time management time of completion time of payment of claims provision time order time period time period assumption time period concept time period principle time phased plan time phasing time policy time preference time productivity time-sale financing time scale