Standby letter of credit?
The Standby letter of credit serves as a secondary payment mechanism. A bank will issue a standby letter of credit on behalf of a customer to provide assurance of his ability to perform under the terms of a contract between the beneficiary
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What it is if you have a modem they should have a reset button or also called a lag switch or standby button. You jus press that down and it willstandby then when you press it… again the connection should come back on but if held in long enough it could lagg you out or lose connection
Answer . no, we can issue standby letter of credit to clients with such credit facilities. although it may be backed with trust receipt depending on the credit standing of… the client. cbctsdp trainee
Buyer (the importer) has to contact their bank (called issuing bank) to establish a letter of credit in favor of seller (importer) through importer bank (also called advising …bank) to get a letter of credit, bank will keep some marginal amount as deposit.
A red clause letter of credit is similar to a letter of Credit which is written to state or confirm the availability of funds for a particular transaction between the seller a…nd buyer. However, a clause is included in the letter stating that the stated amount or credit can be advanced immediately on showing the letter.
A letter of credit is used as a method to facilitate payment of international trade transactions (ie: the import/export of goods/services). Unlike a trade letter of credit, …a standby letter of credit is NOT meant to be used for payment. A standby letter of credit is used as a form of "back-up" guarantee (hence the name "standby") used for a variety of purposes. There are two types of standby letters of credit: Performance Standby L.C. and Financial Standby L.C. Performance Standby's are used to guarantee some sort of performance of a contractual obligation. For example, a construction company building a highway bridge might be required by the highway department to put up a performance standby letter of credit ensuring that they will complete the project contracted or to warranty the work. Under normal circumstances the standby would not be drawn upon, however if the contractor abandoned the project midway through completion or if the bridge were unsafe, the standby letter of credit could be drawn upon for its specified dollar amount. A Financial Standby Letter of Credit is similar in concept to the Performance Standby, but instead acts as a guarantee for payment of financial obligations. For example, companies trading on securities markets are frequently required to have financial standbys in place benefiting the particular stock market exchange which can be drawn upon if they are for whatever reason unable to settle their trades at the end of the day. Financial standby's can also be used in international trade, but in a different manner than standard letters of credit. Normal trade letters of credit are intended to be used for pre-specified shipment(s) of goods or services. The letter of credit requires documents specifically evidencing the trade transaction itself and the letter of credit serves as the vehicle for payment of the trade transaction. When financial standby's are used for trade purposes, they are not intended as a means of payment, but as with all standby's, act as a "back-up" guarantee. Financial standbys frequently are used between buyers and sellers who have frequent, ongoing trade shipments for an extended period of time. The standby acts as a blanket guarantee for the overall obligations of the buyer to pay and does not contains specifics related to any one particular shipment.
What is the practical difference if any between an irrevocable letter of credit and an irrevocable standby letter of credit?
In practical terms the standby LC should be viewed more as a commercial guarantee supported by the bank rather than the prime term of trading . A standby letter of credit (…"Standby") is an irrevocable, binding undertaking by an Issuer (generally, a bank), made at the request of an Applicant (generally, a bank's customer), for the benefit of a Beneficiary, to ensure payment or performance of an underlying obligation. Its commercial value lies in its being totally independent of any agreement between the Beneficiary and the Applicant or the Applicant and the Issuer. Once issued, the issuer must honor the terms of the standby if the beneficiary presents documents, such as a draft (bill of exchange) or written demand for payment, that strictly comply with the terms of the standby letter of credit.. Standbys are most frequently issued in the United States and until relatively recently, were less commonly used in the UK and Europe, where bank guarantees were more likely to be used to achieve similar purposes. In fact, because certain American banks were prohibited from issuing guarantees, standby letters of credit were developed as a substitute and became the primary means by which American banks ensured payment or performance.. Typically, a standby is used to ensure payment of an obligation (such as a contract or lease calling for payment at a future time) or performance of an obligation (such as completion of a construction project). In the case of the performance standby, the beneficiary would seek to provide sufficient funds to enable another contractor to complete the project. Demand guarantees issued by banks or performance bonds issued by insurance companies would provide similar assurances.. As standbys are often used internationally, a body of international custom and practice has developed to promote uniformity in handling standbys. It is embodied in the Uniform Customs and Practice for Documentary Credits (International Chamber of Commerce Publication 500) ("UCP"), which covers commercial letters of credit as well as standbys, and the International Standby Practices ("ISP"), which covers only standbys and was developed by the International Financial Services Association.. Although proceeds of a standby may be assigned, the standby itself is usually not transferable unless the standby so provides. If the standby provides that it is transferable, the UCP and ISP differ on the consequences. Under UCP Art. 48(b), it may be transferred only once. Under ISP Rule 6.02, however, it may be transferred more than once, but the issuer must agree to the transfer requested by the beneficiary. In either case, the restrictions would effectively destroy the ability to trade the instrument quickly..
no because the two is far different from each other.
a standby text, would be something you make up , lets say your away from your computer on msn and yous on "standbye", make something up like "i am at the store" etc
A Stand by Letter of Credit is usually given by banks or financial institutions to vouch on the integrity of a seller and purchaser, acting as an intermediary. The buy and sel…l agreement is made between the two parties that both must uphold their part.
I think it means that you have to wait for a moment.
Supervised by: Petr MastnÃ½
A Standby Contract is an agreement put in place prior to an event that establishes what the price of the resource was the day before the emergency event occurred.
It is nothing hihii
Standby phase is in a yugioh duel after draw phase,you could use card effect at standby phase.
Stand-by on a computer is like a button to put it to sleep like an iPod.
To the best of my knowledge, it means you buy a ticket on the premise that it is likely someone will cancel, thus freeing there seat which you can then take if the do cancel o…r don't show at the airport.