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Standby Letter of Credit
Standby letters of credit are issued mostly by banks, on behalf of a customer to provide assurances of his ability to perform under the terms of a contract which is exist between the beneficiaries of the standby letter of credit. They had been created by US banks in order to circumvent a past rule that prohibited US credit institutions from assuming guarantee obligations in relation to third parties. They can be opened either subject to latest version of UCP (UCP 600) or ISP ISP98 (International Standby Practices - 1998 edition) is the unique rules for Standby letters of credit published by ICC.
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