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A Bank Letter of Comfort is commonly used in Irish business and banking contexts when full guarantees are either not required or not desirable, but some form of assurance is needed regarding a company's financial obligations. These letters are particularly relevant when a parent company or major financial institution wishes to provide support for a subsidiary or related entity without incurring direct legal liability. The document typically includes statements about the relationship between the parties, current policy regarding support, and the nature of the commitment being offered. Under Irish law, while not creating the same level of obligation as a guarantee, a Bank Letter of Comfort carries significant reputational and business implications for the issuing institution. It serves as a middle-ground solution in various financial and commercial arrangements, providing comfort to creditors while maintaining flexibility for the issuing institution.

1. Letter Header and Date: Bank letterhead, date, and reference number

2. Recipient Details: Full name and address of the recipient institution

3. Subject Entity Identification: Clear identification of the subsidiary or entity for which comfort is being provided

4. Relationship Declaration: Statement of the relationship between the issuing bank and the subject entity

5. Current Policy Statement: Declaration of current support policy and practices

6. Comfort Statement: The core statement providing comfort regarding the subject entity's obligations

7. Limitation of Obligations: Clear statement that this is not a guarantee and defining the limits of the commitment

8. Duration and Validity: Period for which the letter of comfort remains valid

9. Governing Law: Statement that the letter is governed by Irish law

10. Authorized Signatory: Signature block with appropriate authority level indicated