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    A payoff letter is a document that states the amounts required to pay off in full the indebtedness owing to a creditor, including the outstanding principal, accrued and unpaid interest, and prepayment and other penalties. It also includes wire transfer information for such payment, a general release of the company, and the commitment of the creditor to release all liens, if any, that the creditor may hold on any of the assets of the company prior to the closing date. Each payoff letter should state that, upon payment at the closing of the amounts set forth therein, such portion of such indebtedness shall be fully paid, satisfied, and discharged in its entirety.
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