Training Guide

Payoff Letters

Training Guide

Payoff Letters

Topic: Commercial Lending
Duration: 1 hr
Format: Remote or in person

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/trainings/payoff-letters/attendee

Prepare Yourself

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

Course

Payoff Letters

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

Payoff Letters
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.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.