What is a Letter of Commitment? Also, if a person were going to a bank to borrow up front money, would this letter of commitm...
Full Question:
What is a Letter of Commitment? Also, if a person were going to a bank to borrow up front money, would this letter of commitment from the Project Lender be good as collateral?
03/02/2007 |
Category: Contractors |
State: California |
#775
Answer:
A letter of commitment, commitment letter or loan commitment is a formal notification from a lender stating that the borrower's loan has been conditionally approved and specifying the terms under which lender agrees make the loan. Whether such a letter would be accepted as collateral by a bank would depend on the bank’s lending policies.