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The Lender Letter of Intent is a critical preliminary document used in the United States financial sector when a lending institution is prepared to move forward with a potential financing arrangement but needs to outline terms before committing to full documentation. This document type serves as a roadmap for the transaction, typically issued after initial discussions but before comprehensive due diligence and final loan documentation. The Letter of Intent includes proposed financing terms, conditions precedent, collateral requirements, and other key provisions that will form the basis of the final loan agreement. While generally non-binding (except for specific provisions like confidentiality), it demonstrates serious intent and helps prevent misunderstandings during the negotiation process. The document must comply with relevant federal lending regulations and state-specific requirements, particularly regarding disclosure and fair lending practices.

1. Date and Address Block: Formal letter heading with date and recipient's address

2. Opening and Parties Introduction: Formal salutation and introduction of the parties involved

3. Purpose Statement: Clear statement of the letter's purpose and the proposed financing arrangement

4. Key Financing Terms: Principal amount, interest rate, term, and basic repayment conditions

5. Basic Security Requirements: Overview of required collateral or security arrangements

6. Due Diligence Requirements: Basic outline of required documentation and verification process

7. Timeline and Process: Expected timeline for formal documentation and closing

8. Non-Binding Statement: Clear statement that the letter is non-binding except for specific provisions

9. Confidentiality: Basic confidentiality requirements regarding the proposed transaction

10. Expiration Date: Validity period of the proposed terms

11. Closing and Signature Block: Formal closing, signature lines, and acknowledgment section