Definition of letter of comfort in English:

letter of comfort

noun

  • An assurance about a debt, short of a legal guarantee, given to a bank by a third party.

    • ‘I doubt whether Mr Martin's client could sue on a statement by a director in an affidavit, whereas he or other financiers perhaps would be able to sue on a letter of comfort.’
    • ‘In that case there was contribution ordered between two parties who had each given some sort of letter of comfort.’
    • ‘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.’
    • ‘In the case of CIE, there is a pressing need to deal with the concerns of workers about letters of comfort they received some years ago regarding their security of employment if there was a major change in the structure of the group.’
    • ‘The following is taken from a letter of comfort to a Bahai many years ago.’
    • ‘A story in Magill magazine disclosed details about the cheque made out for cash to Burke, and the subsequent letter of comfort.’
    • ‘The Bank had a letter of comfort from his solicitors dealing with the compulsory purchase matter.’
    • ‘On the one hand, bank regulators may seek letters of comfort from substantial shareholders.’
    • ‘These include sending letters of comfort to applicants telling them that they had been approved for grant aid but must wait until the money is drawn down from Brussels.’
    • ‘Similarly, letters of comfort may be either binding contracts or informal and uncertain assurances resting entirely upon business goodwill.’
    • ‘A subsequent letter of comfort, issued by Burke on February 4, 1991 came from the minister's private office.’
    • ‘He accessed the financial guarantees through a letter of comfort from Anglo Irish Bank and took a 60 per cent shareholding in Dublin Waterworld.’