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Conditional Commitment Letter POF

Many have never seen a conditional commitment letter so here’s one for you to view and study:


[Client’s name]
[Client’s firm]
[address, telephone, fax, email]

Date: dddddddd

Dear [Client name]:

Having reviewed and evaluated [the property or transaction], subject to receiving a Guarantee supplied by a first class Bank acceptable to us for the purpose of the repayment of principal and interest, we shall extend to [Client’s firm] a one year loan in the sum of $ [000,000,000] for its ventures.

It is understood that we shall receive and that we shall accept a confirmation only from a first class Bank, for the irrevocable transfer of the Guarantee, guaranteeing the repayment at maturity of the loan principal plus the agreed upon interest rate of ___%, with a Certified Copy of the actual Guarantee, and that the original will be lodged and assigned on the Custodial Safekeeping Receipt, from a deposit account with the agreed top bank, to us.

The face value of the Guarantee must represent principal plus interest of the loan advanced and must be payable, at maturity, in one year and one day from its date of issue.

Funds will be disbursed by our bank to the bank supplying the Guarantee (or to mutually consented coordinates) upon our authentication and identification of the guarantee offered to us.

Unless a Bank-to-Bank communication is received by us from the Bank that will supply the guarantee, this commitment will terminate on [MM/DD/YY] at the end of the business day in New York, USA.

For verification of this communication and confirmation of our willingness to proceed with this loan offer, please request that the Bank that will supply the Guarantee make contact with:

Bank officer :

Phone No. :

Fax No.  :





One reply on “Conditional Commitment Letter POF”

It is rare for anyone who has never seen a commitment letter to actually study one so I thought that it may be educational for you.

The purpose of our is to educate our referral partners, prospective clients and current clients. We sincerely trust that you will benefit from this educational resource.

As always we are here to serve you and those whom you choose to refer.

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