What is a payment redirection letter and when is it used?

A payment redirection letter typically refers to a formal document used to instruct or authorize the rerouting of payments from one account, entity, or destination to another, while ensuring adherence to regulatory, legal, or internal compliance requirements. Since this letter serves as a mechanism to update payment details, prevent fraud, mitigate risks, or align with changing contractual or operational needs it should only be used on a one time basis to correct the payment from the Limited Partner.