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BoatWiki - Definitions
An authorization for payoff is a written directive from the borrower allowing a third party to payoff the balance of a boat loan. It identifies the parties involved, the subject boat, and any loan information. The authorization may also contain instructions on how to provide the necessary lien release documents or where to implement such recordings.
In boat purchase transactions, it is often necessary to pay off an underlying boat loan as part of the settlement. Rather than entrusting such funds to the seller, a buyer or closing agent will often elect to make such payment directly to the lender. This will entail what is known as a payoff demand from the lender and an authorization for payoff from the seller. It also provides the buyer with more control in making sure the appropriate lien or mortgage releases are handled in a timely manner.
Credits and References
3/18/2022 - Page initiated by Team BoatWiki.