This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,.Step 1 - Print and Complete Form. A collateral loan agreement is a legal agreement, much like a standard loan agreement, but the borrower has put up assets as security for the loan. A guarantee and collateral agreement is a contract between a lender and a borrower where the borrower guarantees payment or surrenders collateral. Obtaining payoff letters which confirm that a secured party will release its security interest in collateral and terminate UCC financing statements is crucial. This entity will help the Credit Union request, record and maintain insurance records on collateral used for most types of loans. The FDIC may be able to assist you in obtaining a lien release if the request is for a customer of a failed bank that was placed into FDIC receivership.