A letter from a parent company including a phrase such as 'it is our policy to ensure that the business of the subsidiary ia at all times in a position to meet its liabilities'. Such a letter has no effect in law and is only binding in honour. It is not a legally binding guarantee.
A letter issued to a lending institution by a parent company acknowledging the approval of a subsidiary company's attempt for financing.
Provided by a company as an assurance that it will be able to meet all of its debts and obligations under a contract.
A letter provided by a parent company to a lender confirming its awareness and approval of the lender providing credit facilities to one of its subsidiaries. These letters are not often legally binding.