Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

letter of comfort

Read a random definition: anno orbis conditi

A quick definition of letter of comfort:

A letter of comfort is a type of letter that can be used in two different situations. In the world of finance, it is a letter from a certified public accountant that confirms that the financial statement accompanying a securities offering is accurate and truthful. However, this type of letter is limited in its effect because the CPA can only attest to certain representations and warranties that the issuer has authorized them to rely on. In the corporate world, a letter of comfort is a letter, usually from a parent corporation on behalf of a subsidiary, that expresses support for the activities and commitments of another corporation. It is important to note that this type of letter is not a guarantee, but rather a statement of support.

A more thorough explanation:

A letter of comfort is a document that provides assurance or support to another party. There are two common types of letters of comfort:

A comfort letter is a letter from a certified public accountant (CPA) that certifies that no false or misleading information has been used in preparing a financial statement that accompanies a securities offering. This letter is usually limited in its effect because the CPA only attests to certain representations and warranties that the issuer has authorized the CPA to rely on. It is also known as a cold-comfort letter.

Example: A company is preparing to issue securities and hires a CPA to review their financial statements. The CPA provides a comfort letter to the company, which is included in the securities offering to provide assurance to potential investors that the financial statements are accurate and reliable.

A letter of comfort is a letter, usually from a parent corporation on behalf of a subsidiary, that provides support (but not a guarantee) for the activities and commitments of another corporation.

Example: A subsidiary company is seeking a loan from a bank, but the bank is hesitant to lend because the subsidiary has a limited operating history. The parent company provides a letter of comfort to the bank, stating that they support the subsidiary's activities and commitments. This letter provides assurance to the bank that the subsidiary has the backing of a larger, more established company.

These examples illustrate how letters of comfort can provide assurance and support to parties involved in financial transactions.

letter of attornment | letter of comment

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.