Collateral release letter sample 2025

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Unlike a payoff letter that terminates all security interests in connection with the repayment and satisfaction of obligations under a credit facility, this collateral release letter removes collateral support, but leaves a credit facility intact as an unsecured facility.
Request for Release of Collateral means the written request that must be made by the Borrower and delivered to the Collateral Agent, in the case of Collateral constituting certificated securities, or to the Lender, in the case of any Collateral other than certificated securities.
Collateral Letter of Credit means any irrevocable unconditional Letter of Credit issued in the name of the Administrative Agent for the benefit of the Lenders in form and substance satisfactory to the Administrative Agent and drawn on a bank having a rating of at least AA by SP and otherwise satisfactory to the
Any release of collateral must not materially cause an adverse effect to the projects operation or financial condition and the remaining collateral must be sufficient to provide for adequate collateral coverage. Such assurance must be supported by written documentation from the lender and be acceptable to the Agency.
This is a standard form of release of collateral letter. A release letter is typically given by a lender to a borrower after repayment of the borrowers outstanding loans to the lender under a secured loan agreement.
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It is the process by which a lender releases collateral back to the borrower after the borrower has fulfilled its obligations under the loan agreement. In most cases, collateral release is a gradual process, with the lender releasing certain assets as the borrower repays the loan.

partial release of collateral