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What is the practical difference if any between an irrevocable letter of credit and an irrevocable standby letter of credit?
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. === ===
Is income statement same as financial statement?
no. income statement is a only a statement in financial statements.
Is the Bank Reconciliation statement a part of financial statement?
Bank reconciliation statement is not part of financial statement it is the helping statement to tally bank account with balance in banks statement.
What are the different accounting reports?
-statement of financial position, -statement of profit and loss and other comprehensive income, statement of cash flows, -statement of change in equity, -Notes to the account
What is an if-then form statement?
conditional statement
My home stereo will not turn on from standby?
standby
When was StandBy Records created?
StandBy Records was created in 2007.
What is a standby phase?
Standby phase is in a yugioh duel after draw phase,you could use card effect at standby phase.
What is the plural word standby?
The plural form of the noun 'standby' is standbys.
Where can I buy standby generators online?
Homedepot.com is an excellent place to buy standby generators online, and because it is from Home Depot, support can be easily obtained. standby .com is having a huge discount on standby generators right now.
Running cost for a PC monitor on standby?
what are the running costs for a PC monitor on standby
Difference between hot standby and cold standby in plc?
Supervised by: Petr Mastný
Is micromax x550 dual standby?
Yes. It is a dual sim phone with Dual standby.
Who is eligible for military standby flights?
can fiance's standby fly with a retired service member
Do you loose charge when you put an iPad on standby?
Standby uses very little power, and a properly charged iPad can go a couple of weeks on standby. It does use power.
Where do I get the best home standby generator?
In my opinion you should probably buy your home standby generator new and not used. You can shop for your home standby generator at sears or sears.ca.
How do you put PS3 in standby mode?
Turning off your system actually puts it in standby. Simply push the power button and the PS3 will go to standby. You can also select shut down PS3 in the PS3 menus to shut the system down to standby mode.
