Standby Letter of Credit
and Builders Letter of Credit
York State Banking Department)
BANK OF ROCHESTER
||STANDBY LETTER OF
CREDIT and BUILDERS LETTER OF CREDIT
of Credit: A letter
of credit that is normally written to be drawn on only in the
event of nonperformance of a specified event, Standby letters
of credit are issued for periods up to 12 months in favor of domestic
Builders Letter of Credit: A letter of credit generally
provided to municipalities for surety as to the satisfactory completion
of projects by residential developers.
||A business that is located
in the Bank's trading area, that is in good standing, and that
is not highly leveraged.
||To guaranty payment.
||Maximum $2 million.
of Credit: Guarantees
not required. Highly liquid collateral required.
Builders Letter of Credit: Guarantees required. Underlying
real estate required and additional collateral may also be required.