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lettera di patronage

English translation: letter of comfort

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Italian term or phrase:lettera di patronage
English translation:letter of comfort
Entered by: Ivana UK
Options:
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15:34 Aug 15, 2006
Italian to English translations [PRO]
Bus/Financial - Finance (general) / nota integrativa
Italian term or phrase: lettera di patronage
Lettera di patronage rilasciata da XXX S.r.l. per conto di YYYY S.p.A. a favore di Banca Popolare Commercio Industria per Euro 80.000.000.

Falls under the "Fideiussioni" item.

Any help much appreciated! (a kudoz glossary entry translates this term as "letter of comfort"..)
Ivana UK
United Kingdom
Local time: 22:31
letter of comfort
Explanation:
Ivana, that's right.(also supported by my Cesari Economics and Finance Dictionary, which is normally very reliable)

Definition:

Declaration issued by a parent company, holding company or in general by a parent company in favour of a third party creditor (usually a bank), whereby it certifies that the company bound by the guarantee is affiliated to the group and provides assurance that said company will meet its obligations (without however accepting any legal obligation on its own part).

Selected response from:

Jean Martin
Local time: 22:31
Grading comment
I opted for this definition although patronage/sponsorship also appear to be correct - thanks to both answerers!
4 KudoZ points were awarded for this answer

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Summary of answers provided
5 +1Patronage letter/Sponsorship letterAnna Maria Augustine at proZ.com
4letter of awareness / keep-well agreements
lucinda byatt
4letter of comfort
Jean Martin


  

Answers


18 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
letter of comfort


Explanation:
Ivana, that's right.(also supported by my Cesari Economics and Finance Dictionary, which is normally very reliable)

Definition:

Declaration issued by a parent company, holding company or in general by a parent company in favour of a third party creditor (usually a bank), whereby it certifies that the company bound by the guarantee is affiliated to the group and provides assurance that said company will meet its obligations (without however accepting any legal obligation on its own part).



Jean Martin
Local time: 22:31
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 481
Grading comment
I opted for this definition although patronage/sponsorship also appear to be correct - thanks to both answerers!
Login to enter a peer comment (or grade)

23 mins   confidence: Answerer confidence 5/5 peer agreement (net): +1
Patronage letter/Sponsorship letter


Explanation:
Jean is not wrong but these terms are correct too.

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Note added at 24 mins (2006-08-15 15:58:55 GMT)
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Economics Web Institute - Essay: Credit risk
When granting loans to a "local" company, for example, banks usually ask the "mother" company to sign a committed patronage letter: if the local company is ...
www.economicswebinstitute.org/essays/credit.htm - 24k - Cached - Similar pages

Anna Maria Augustine at proZ.com
France
Local time: 23:31
Works in field
Native speaker of: Native in EnglishEnglish, Native in FrenchFrench
PRO pts in category: 20

Peer comments on this answer (and responses from the answerer)
agree  Rosanna Palermo: sponsorship sounds great
8 hrs
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1059 days   confidence: Answerer confidence 4/5Answerer confidence 4/5
letter of awareness / keep-well agreements


Explanation:
This is similar to "letter of comfort", but in a weaker form that may not be legally binding. However, it does seem to be quite widely used.

LETTER OF AWARENESS is a formal letter written to a lender, normally by a parent company, acknowledging its relationship with another group company and its awareness of a loan being made to that company. It is the weakest form of comfort letter. Such letters do not constitute a guarantee, but may nevertheless involve a significant moral commitment on the part of the writer.

KEEP-WELL AGREEMENTS, also known as comfort letters, are documents from one party written to another party in regards to contingent liability. Comfort letters have been held by courts to be legally enforceable commitments if they meet certain standards criteria of language. Comfort letters meeting these standards are loss contingencies in that they are construed to guarantee a financial commitment and must be reported under Statement of Financial Accounting Standard 5 as a guarantee. Auditors should review the language of all comfort letters and seek to discover contingent liabilities not disclosed in financial statements in situations where comfort letters exist. Sources of information concerning the contingent liabilities of comfort letters include: management and third parties. Auditors should document within the client representations letter management assurances that loss contingencies have been reported.

both from http://www.ventureline.com/Glossary_K.asp
and numerous google sources

lucinda byatt
United Kingdom
Local time: 22:31
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 8
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