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Johny Fernandez: What is a zero
balance letter?

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Sean Murray: What is a zero
balance letter? A zero balance

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letter is essentially a payoff
letter in which the balance is

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actually already zero. That
formally states that there is no

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balance. It's something that
another lender or funder might

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want to see. To be 100% certain
that there's no outstanding

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obligation with the competitor,
they might say, we need the zero

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balance letter in order to move
forward on the deal.