| Commentary

47 General

| Commentary

47 General

The well-advised parent company will not issue a letter of responsibility that creates legal obligations in circumstances where it has declined to issue a guarantee. In practice, some major companies will only issue very short and simple letters of responsibility that quite clearly create no legal obligations at all. If the bank wishes to receive a non-legally binding document that identifies various actions the parent company will or will not take in certain circumstances, then the approach that is most favourable for the bank to adopt is that of the parent company issuing a letter of responsibility in

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