An Authorization Letter For Gold Loan Release is a critical document in South African banking practice, particularly in transactions involving precious metals as collateral. This document is required when a borrower who has pledged gold as security for a loan needs to authorize its release, typically after fulfilling loan obligations or during loan restructuring. The letter must comply with South African banking regulations, including the National Credit Act and Precious Metals Act, and should contain specific details about the loan account, the gold collateral specifications, and the authorized parties. It serves as a formal instruction to the financial institution and provides legal protection for both the lender and borrower during the release process. This document type is commonly used in South African financial institutions where gold-backed lending is a significant practice, especially in regions with strong precious metals trading activities.

1. Letter Header: Contains date, reference number, and formal letterhead details

2. Recipient Details: Full name and address of the bank/financial institution

3. Subject Line: Clear indication that this is an authorization for gold loan release

4. Authorizer Information: Full name, address, and identification details of the person giving authorization

5. Loan Reference: Specific details of the gold loan account number and other relevant identifiers

6. Authorization Statement: Clear and unambiguous statement of authorization for the release of the gold loan

7. Gold Details: Specific details of the gold being released including weight, purity, and form

8. Identity Verification: Reference to attached identification documents and verification requirements

9. Signature Block: Space for signature, name, date, and witness details