Security & Collateral · glossary
A letter from an outgoing lender stating the exact sum which, paid on a stated day, clears everything it is owed. Kite's put the figure at £1,900,000, including a £40,000 fee for ending early. Payment and Kite's release then happened at the same moment. Chapter 2
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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