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.