Letter of Indemnity


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Letter of Indemnity

A clause in a contract stating that payments must be made regardless of what happens. Specifically, a letter of indemnity mandates that if one party is unable to complete the contract, that party will pay reparation to the other. See also: Indemnity insurance, Hell or high water contract.
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Some industry people have said in their defense that title insurance and letter of indemnity ensure that even if there is a huge backlog in reconveyances (and there doesn't seem be anyone who denies this), the consumer is still protected.
detailed legal analysis of GAFTA sale contract forms and standard letter of indemnity P&I Clubs forms
Credit Lyonnais (AA-/Stable/A-1+) acts as program administrator, liquidity provider, letter of indemnity provider, and sponsor.