standby letter of credit
standby letter of credit see letter of credit

Merriam-Webster’s Dictionary of Law. . 1996.

standby letter of credit
Also known as a standby credit, a financial letters of credit or an SLC. Similar to an on demand bond, it enables one party to a contract to obtain payment from the issuer of the standby credit when the other contracting party has failed, or is alleged to have failed, to perform the contract or some part of it. They are often expressed to be payable simply on the presentation of a written demand and certain documents in a specified form. In this way they are different to letters of credit and other documentary credits.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • standby letter of credit — An obligation issued by a bank on behalf of a bank customer to a third party. A standby letter of credit is a bank promise to pay the third party in the event of some defined failure by the bank s customer, usually, but not always, a failure to… …   Financial and business terms

  • Standby Letter of Credit - SLOC — A guarantee of payment issued by a bank on behalf of a client that is used as payment of last resort should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in… …   Investment dictionary

  • letter of credit — An obligation issued by a bank on behalf of a bank customer to a third party. There are many different kinds of letters of credit. The two most common are commercial letters and standby letters. A commercial or trade letter of credit is a bank… …   Financial and business terms

  • letter of credit — letter of credit: a document issued to a beneficiary at the request of the issuer s customer in which the issuer (as a bank) promises to honor a demand for payment by the beneficiary in order to satisfy or secure the customer s debt compare… …   Law dictionary

  • letter of credit — An engagement by a bank or other person made at the request of a customer that the issuer will honor drafts or other demands for payment upon compliance with the conditions specified in the credit. A credit may be either revocable or irrevocable …   Black's law dictionary

  • clean letter of credit — A letter of credit that can be drawn upon with a simple written request not supported by other documentation. Often used to identify or describe standby letters of credit. This type of letter of credit is often used to enhance the credit quality… …   Financial and business terms

  • transferable letter of credit — Document that allows the first beneficiary on a standby bank assurance of funds to transfer all or part of the original letter of credit to a third party. Bloomberg Financial Dictionary …   Financial and business terms

  • Crédit Documentaire — Lettre de crédit Pour les articles homonymes, voir Lettre. La lettre de crédit (ou accréditif) est un engagement de paiement généralement irrévocable souscrit par le banquier d un acheteur de marchandises ou autres prestations commerciales de… …   Wikipédia en Français

  • Crédit documentaire irrévocable — Lettre de crédit Pour les articles homonymes, voir Lettre. La lettre de crédit (ou accréditif) est un engagement de paiement généralement irrévocable souscrit par le banquier d un acheteur de marchandises ou autres prestations commerciales de… …   Wikipédia en Français

  • standby credit — A letter of credit that guarantees a loan or other form of credit facility. The bank that issues it promises to refund the amount borrowed if the borrower defaults on repayment. It calls for a certificate of default by the applicant. In a note… …   Big dictionary of business and management

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