payoff letter

payoff letter
USA
Letter agreement between a lender and a borrower providing that on satisfaction of certain conditions (usually payment of a specified amount on a specified date), the lender releases the borrower and any supporting guarantors from their obligations under a loan agreement and related collateral documents.
For further information, see Practice Note, Security and Guaranties: Release (www.practicallaw.com/6-381-2932).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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