Standby Letter of Credit

A stipulation that states a letter of credit will be called back if the payer defaults.

Investopedia Says:
A letter of credit is typically used in international transactions.

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Letter of credit that represents an obligation by the issuing bank on a designated third party (the Beneficiary), that is contingent on the failure of the bank's customer to perform under the terms of a contract with the beneficiary. Also called a Performance Bond. A standby letter of credit is most often used as a Credit Enhancement with the understanding that, in most cases, it will never be drawn against or funded.