standby credit

standby credit
A letter of credit that guarantees a loan or other form of credit facility. The bank that issues it promises to refund the amount borrowed if the borrower defaults on repayment. It calls for a certificate of default by the applicant. In a note issuance facility a standby credit is a third-party guarantee to honour an issue to an investor who may have a low credit rating. See also revolving bank facility

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  • standby credit — See standby letters of credit. bond guarantee Practical Law Dictionary. Glossary of UK, US and international legal terms. 2010 …   Law dictionary

  • standby credit — / stændbaɪ ˌkredɪt/ noun 1. credit which is available if a company needs it, especially credit guaranteed by a euronote 2. credit which is available and which can be drawn on if a country needs it, especially credit guaranteed by a lender (a… …   Dictionary of banking and finance

  • Standby Credit —    Arrangement with a lender (a group of banks, or the IMF in the case of a member country) whereby a fixed amount of credit will be available for drawing during a given period, if required …   Financial and business terms

  • standby letter of credit — see letter of credit Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. standby letter of credit …   Law dictionary

  • standby letters of credit — Also known as a standby credit, a financial letters of credit or an SLC. Similar to an on demand bond, it enables one party to a contract to obtain payment from the issuer of the standby credit when the other contracting party has failed, or is… …   Law dictionary

  • standby — ▪ I. standby stand‧by 1 [ˈstændbaɪ] also stand by noun TRAVEL 1. [countable] someone or something that is ready to be used when needed: • The government has asked potential donor countries for 75,000 tonnes of grain as a standby …   Financial and business terms

  • standby letter of credit — An obligation issued by a bank on behalf of a bank customer to a third party. A standby letter of credit is a bank promise to pay the third party in the event of some defined failure by the bank s customer, usually, but not always, a failure to… …   Financial and business terms

  • Standby Letter of Credit - SLOC — A guarantee of payment issued by a bank on behalf of a client that is used as payment of last resort should the client fail to fulfill a contractual commitment with a third party. Standby letters of credit are created as a sign of good faith in… …   Investment dictionary

  • Standby Line of Credit — A sum of money, not to exceed a predetermined amount, that can be borrowed in part or in full from a credit granting institution if the borrower needs it. In contrast, an outright loan would be a lump sum of money that the borrower intended to… …   Investment dictionary

  • Crédit Documentaire — Lettre de crédit Pour les articles homonymes, voir Lettre. La lettre de crédit (ou accréditif) est un engagement de paiement généralement irrévocable souscrit par le banquier d un acheteur de marchandises ou autres prestations commerciales de… …   Wikipédia en Français

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