Letter-of-comfort definition

(finance) A type of letter popular in the 1980s addressed to a lender giving some type of reassurance about the position of a borrower (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).
noun
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Other Word Forms

Noun

Singular:
letter-of-comfort
Plural:
letters of comfort