Financial Standby Letter of Credit [Last Updated by: shahriar on 2012-01-01]
Financial Standby Letter of Credit --- is issued to guarantee future payment obligation(s). The Financial Standby LC will only be drawn upon should the Applicant (or a third party) not make the payment(s) as expected. This instrument may also be used in lieu of cash collateral. Financial standby LCs are NOT related to underlying commercial trade transactions. * Financial standby LCs may NOT be considered Trade products where there is no underlying trade transaction.