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Comfort Contract, agree to make Ms. Moans class a safe learning environment by making her and my classmates feel comfortable sharing their questions, thoughts, concerns and ideas. In addition, I will.

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The letter of comfort is not legally binding or an obligation by the holding company to repay the loans. It is just an assurance to the lender that the holding company is aware of the transaction, the policies of the subsidiary and its intentions in seeking a loan.

Consequently, while a guarantee would be a legal binding commitment which can be enforced against the guarantor in the same manner as against the borrower, a letter of comfort is a mere moral obligation on the provider where chances of enforceability being minimum.

A comfort letter confirms that a business's CRA program accounts are in good standing. It is most commonly requested by financial institutions (lending institutions) and lawyers. For example, a bank could request a comfort letter from the CRA for a business before granting a loan.

Comfort letters are statements from an issuer's auditor that the auditor reviewed the issuer's financial data and assures its accuracy. In public offerings, underwriters generally request comfort letters to establish a due diligence defense to avoid liability for securities fraud.

Distinct from their legally binding counterpart – the guarantee – letters of comfort are designed to give assurance or encouragement only, imposing moral, but not legal, obligations on their issuer.

Letters of comfort are generally used when the holding company is unable or unwilling to give a guarantee, but wishes to give some comfort (to the recipient of the letter) as to its subsidiary's ability to satisfy its contractual obligations.

Although the letter of comfort is not binding between the two parties, it may have binding provisions. The letter of comfort provides an opportunity for the two parties to clearly spell out these binding provisions.

A letter of comfort, sometimes called a "letter of intent", is a communication from a party to a contract to the other party that indicates an initial willingness to enter into a contractual obligation absent the elements of a legally enforceable contract.

The comfort letter can be issued by a Certified Public Accountant declaring no indication of false or misleading information in the financial statements and that the company's prospectus follows the prevailing accounting standards. This is sometimes used in connection with an initial public offering.

The comfort letter does not make a legally enforceable commitment but conveys the ability of the other party to fulfill the terms of the agreement under discussion. A comfort letter is also known as a letter of intent or, in some cases, a solvency opinion.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232