Commitment letter | Practical Law

Commitment letter | Practical Law

Commitment letter

Commitment letter

Practical Law UK Glossary 8-373-0959 (Approx. 2 pages)

Glossary

Commitment letter

A letter (also called a mandate letter) in which a lender sets out the terms on which it is prepared to lend money to the borrower. It is generally accompanied by a term sheet setting out the terms of the loan. If the letter is then signed by the borrower and returned to the lender it forms the mandate.