Your letter of application for overdraft facility dated ____________ was forwarded to the Board of Directors but I regret to inform you that they have found themselves unable to grant your request on account of insufficiency of the cover offered. The offered security does not cover the risk which is against the considered policy of the bank. We do not grant advances in excess of 80% of the market value of the class of security you have offered. We can, therefore, permit over draft of ____________ (Amount) against the shares offered by you, if you desire. But if you can lodge with us similar additional security of the market value of ____________ (Amount) we shall reconsider your request through our Board of Directors and may sanction overdraft for a higher amount. Since you have been one of our valued customers, we would like to do further business with you and always co-operate with you.
But rules are rules and we cannot dither from them. Yours faithfully, (Your Name)Branch Manager Dated__________