Security & Collateral · glossary
A short deed by which a lender gives up its security and confirms it is owed nothing more. Kite, the Company's earlier lender, gave one at the moment it was paid off from the Bank's loan. The Bank gives its own at the end of the loan (clause 14.1). Debenture §14.1 · Chapter 2 · Chapter 10
Explained in Chapter 2, What the Company Owns, and Who Already Has a Claim, of Security & Collateral.
Repaying Kite was one of the stated purposes of the Bank's loan. The answer was to make both things happen at the same moment. Kite first gave a payoff letter: a letter stating the exact sum that, paid on a stated day, clears everything owed. Then Kite signed a deed of release, a short deed giving up its security and confirming that nothing more is owed.Read Chapter 2, What the Company Owns, and Who Already Has a Claim →
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