CHAPTER 13. LOANS. LIMITATIONS ON INDEBTEDNESS. BUSINESS STOCK AND SECURITIES that are CAPITAL
В§ 13.12. Standby letters of credit.
(a) Definition. The term standby letter of credit means a letter of credit, or similar arrangement however named or described, which represents an obligation to the beneficiary on the part of the issuing institution to repay money borrowed by or advanced to or for the account of the account party, or to make payment on account of an indebtedness undertaken by the account party, or to make payment on account of a default (including a statement of default) by the account party in the performance of an obligation as used in this section. The definition of will not add commercial letters of credit and comparable instruments where in actuality the institution that is issuing the beneficiary to draw upon the organization, that do not guaranty re payment of the cash responsibility associated with the account celebration and that do not offer that re payment is occasioned by standard regarding the the main account celebration. Continue reading “CHAPTER 13. LOANS. LIMITATIONS ON INDEBTEDNESS. BUSINESS STOCK AND SECURITIES that are CAPITAL”
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