Letter of Comfort

Letter of Comfort

1. Before or during a new issue, a statement by an auditor stating that, while a full audit has not been done, a review of the issue's prospectus has revealed nothing inaccurate or misleading. The letter of comfort also states that the auditor is confident that a full audit would not uncover anything unusual that would negatively affect the issue.

2. A letter that a parent company submits to a bank on behalf of a subsidiary. When the subsidiary is applying to borrow funds from the bank, the letter of comfort states that the parent company approves of and supports the application.
References in classic literature ?
Jennings no language, within her reach in her moments of happiest eloquence, could have expressed; and now she could reproach her only by the tears which streamed from her eyes with passionate violence--a reproach, however, so entirely lost on its object, that after many expressions of pity, she withdrew, still referring her to the letter of comfort.
An LOU is a letter of comfort issued by one bank to branches of other banks, based on which foreign branches offer credit to buyers.
This letter of comfort was our guarantee of wages and that's basically null and void because the investor apparently isn't there anymore.
Asked by the national media about the implementation of the PayPal solution in Tunisia, Maarouf explained that "contacts are on with the main PayPal managers, who have positively reacted to the Tunisian proposal by setting up a team in charge of the Tunisian file, but also by accepting the contents of the letter of comfort sent to them by the Central Bank of Tunisia.
15% per annum, Secured by a pledge over certain receivables and a letter of comfort from the Company, No further financial covenants.
The Sindh government has provided JICA with a Letter of Comfort and aletter for the mission overview.
They may give a guarantee, letter of under taking or letter of comfort in respect of trade credit for a maximum period of three years from the date of shipment.
The President has graciously approved the consideration of all incoming vessels into the Nigerian territorial waters subject to receipt of a Letter of Comfort from all terminal operators and off-takers of Nigerian Oil and Gas as guarantee that nominated ships are free and will not be utilized for any illegal activity whatsoever," the letter, issued by state-owned Nigerian National Petroleum Corp.
letter of comfort - requirements for significant controller shareholders crossing a 49% or 74% shareholding threshold to provide a 'letter of comfort' to the QFC Regulatory Authority; confirming the shareholders' capability and willingness to support the firm;
In issuing a letter of comfort, the person signifies its willingness and commitment to support the firm in case of unforeseen contingencies that may affect its ability to maintain adequate capital and liquidity levels to meet its obligations and regulatory requirements," the QFCRA said.