---
title: "Letter of release (LOR)"
url: https://carrierkyc.com/glossary/letter-of-release
description: "A letter of release (LOR) is a factor's written notice that it no longer claims a carrier's invoices, so debtors pay the carrier or its new factor."
---

# Letter of release (LOR)

**Definition:** A letter of release (LOR) is a factor's written notice that it no longer claims a carrier's invoices, so debtors pay the carrier or its new factor.

Also called: LOR, Release letter, NOA release. Category: Factoring.

Releases happen when a carrier changes factors or stops factoring. The new factor typically wants an LOR from the old factor sent to each debtor, a payoff or buyout of open invoices, and a [UCC-3](https://carrierkyc.com/glossary/ucc-3) that terminates or amends the old factor's [UCC-1](https://carrierkyc.com/glossary/ucc-1). Without the release, brokers keep paying the old factor, because under UCC §9-406 a debtor that has received a valid notice of assignment discharges its debt only by paying the assignee.

A release should identify the carrier by legal name and USDOT or MC number, state which invoices or dates it covers, and say where payment should go from now on. Partial releases, for one debtor or a set of invoices, are common in buyouts.

> **Red flag: Red flags** Forged LORs are a payment-redirection tool. A fake release on a factor's letterhead, followed by a new NOA pointing to a different account, can move a carrier's receivables within days. Before acting on any release, call the releasing factor at a number you found independently, and confirm the new payee is who it claims to be.

Draft a clean release with the [NOA and release letter generator](https://carrierkyc.com/tools/noa-generator). General information, not legal advice: confirm state-specific questions with your counsel.

## Related

- [Notice of assignment (NOA)](https://carrierkyc.com/glossary/notice-of-assignment)
- [UCC-3 amendment](https://carrierkyc.com/glossary/ucc-3)
- [NOA & release letter generator](https://carrierkyc.com/tools/noa-generator)
- [Two NOAs, one carrier: when another factor claims the same invoices](https://carrierkyc.com/guides/conflicting-noas)
- [Notice of assignment in freight factoring: UCC 9-406 and releases](https://carrierkyc.com/guides/notice-of-assignment-freight-factoring)

## Sources

- [UCC §9-406: Discharge of account debtor; notification of assignment](https://www.law.cornell.edu/ucc/9/9-406) (Cornell LII)
- [UCC §9-513: Termination statement](https://www.law.cornell.edu/ucc/9/9-513) (Cornell LII)