This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,.The payoff demand processing fee is paid in escrow. Please see more information in the Payoff Demand Instructions. If so, is there one specifically that you typically use? Obtaining payoff letters which confirm that a secured party will release its security interest in collateral and terminate UCC financing statements is crucial. Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free. A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends. Learn how payoff letters work.