A Standby Letter of Credit represents an obligation of the Bank to the beneficiary of the credit. The expectation is that the underlying transaction will be completed as agreed and the Standby Letter of Credit will not be drawn. The major difference between a Commercial and a Standby Letter of Credit is that a Commercial Letter of Credit (Import or Export) is a payment method for a trade transaction whereas a Standby Letter of Credit supports the payment of a debt, which debt may or may not be trade related.

Banks works with its clients to assure that the terms of the Letter of Credit reflect the negotiations of the parties. A Standby Letter of Credit can be used for many purposes, including a bid bond, a performance bond, or support for a loan or unpaid invoices made on an open account shipment.

Our Banks are experienced in issuing Standby Letters of Credit, and has issued these instruments for a wide variety of purposes both domestic and international.