Also referred to as an "LOD". This is a letter instructing one party (the addressee) to pay another party. Since record labels typically fund recording costs, LODs are customary in a music producer agreement where the artist directs its record label to pay the producer's advance and royalties directly (instead of going through the artist.) SoundExchange also requires a LOD for any payments of Featured Artist royalties to parties who are not technically Featured Artists (i.e. producers, mixers.)