Letter agreement between a lender and a borrower providing that on the satisfaction of certain conditions by the borrower (usually payment of a specified amount on a specified date), the lender will release its liens on all collateral securing the loan and all obligations of the borrower, and any guarantors under the loan agreement and related collateral documents are discharged (except obligations that by their terms survive the repayment of the loan, such as certain indemnity obligations).

For a standard form of payoff letter, with integrated drafting tips and explanatory notes, see Standard Document, Payoff Letter. For further information on loan payoff arrangements and the termination of security interests and guarantees, see Practice Note, Security and Guaranties: Release.