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Standby letters of credit

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  • suesarkis@aol.com
    Letters of credit guarantee payment after performance such as completing a contract or delivering certain goods. A Standby Letter of Credit is to reduce the
    Message 1 of 1 , Jan 13, 2006
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      Letters of credit guarantee payment after performance such as completing a
      contract or delivering certain goods. A Standby Letter of Credit is to reduce
      the risk associated with nonperformance in a contract that calls for
      performance. In this sense, standby credits are comparable to performance bonds. For
      example, a standby credit can be used when a city hires a contractor to
      build a structure. The city may require the contractor to open a standby credit
      with a local bank, and name the city as the beneficiary. If the contractor
      ultimately fails to perform under the terms of the construction contract, the
      city can collect money under the standby credit. The city can use this money
      to hire another contractor, or otherwise complete the project.


      Sincerely yours,
      Sue
      ____________________________________________________
      Sue Sarkis
      Sarkis Detective Agency

      (est. 1976)
      PI 6564
      1346 Ethel Street
      Glendale, CA 91207-1826
      818-242-2505
      818-242-9824 FAX

      If you can read this, thank a teacher. If you can read this in English,
      thank a military veteran.

      God Bless America and her allies forever !!


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