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Facilitator Guide

Payoff Letters

What’s covered

  • Repayment confirmations 
  • Common components of a final payoff amount 
  • Payment instructions 
  • Terminations 
  • Reimbursement obligations 
  • Reinstatement provisions 
  • Signatures 

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/discussions/payoff-letters/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

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    Course

    Payoff Letters

    A look at payoff letters, including when they’re used, why they’re important, and what they usually contain.

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    Exercise

    PDF

During the session

 
Part 1: Knowledge Check 
 
Ask attendees these questions to ensure they understand the topic: 
 
  • Are there any points in payoff letters that lawyers do negotiate? If so, what are they? 
  • What are some of the deal-specific components that the amount due in a payoff letter can be broken down into? 
  • What steps can the lender take to help them avoid having to provide a new payoff letter for minor delays? 
  • What are some common exceptions to the termination of the loan documents in a payoff letter? 
  • What’s a reimbursement obligation? 
  • Who are some of the parties that may be signatories to the payoff letter? 
 
Part 2: Group Exercise 
 
Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond. 
 
Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups. 
 
Part 3: War Stories and Firm Specifics 
 
Share your own experiences and guidance, including: 

  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation) 
  • General practice tips (dos and don’ts) 
  • Firm-specific guidance and practices 

After the session

 To continue their learning, attendees can check out related courses in Hotshot’s Commercial Lending topic.