The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

LETTER OF LENIENCY Definition & Legal Meaning

Definition & Citations:

Offer by deed change to a debtor close to default. Intent is to allow the debtor time to liquidate assets, or arrange to settle the debts without being declared bankrupt. Some or all creditors bind themselves to refrain from taking any legal action during this time. Also known as letter of license.

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