Letter Of Indemnity

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DEFINITION of 'Letter Of Indemnity'

1. A letter guaranteeing that contractual provisions will be met, otherwise financial reparations will be made.

2. A letter requesting replacements for lost shares from a company's treasury.

INVESTOPEDIA EXPLAINS 'Letter Of Indemnity'

1. The principal behind a letter of indemnity is the guarantee that losses will not be suffered, should certain provisions of a contract not be met.

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