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letter of comfort

Line breaks: let¦ter of com|fort

Definition of letter of comfort in English:

noun

An assurance about a debt, short of a legal guarantee, given to a bank by a third party.
Example sentences
  • He accessed the financial guarantees through a letter of comfort from Anglo Irish Bank and took a 60 per cent shareholding in Dublin Waterworld.
  • The Bank had a letter of comfort from his solicitors dealing with the compulsory purchase matter.
  • Tilney said BR, which has been operating under financial constraints for many years, suffered another blow in 2002 when Sail withdrew its letter of comfort to the bank.

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Word of the day orthoepy
Pronunciation: ˈɔːθəʊɛpi
noun
the correct or accepted pronunciation of words