Letters of credit and acceptances.

CFR · 2024-01-01 · US · Title 12

(a) (1) To repay money borrowed by or advanced to or for the account of the account party; or (2) To make payment on account of any evidence of indebtedness undertaken by the account party; or (3) To make payment on account of any default by the party procuring the issuance of the letter of credit in the performance of an obligation. (b) (c) (d) (1) The issuing bank is paid an amount equal to the bank's maximum liability under the standby letter of credit; or (2) The party procuring the issuance of a letter of credit or ineligible acceptance has set aside sufficient funds in a segregated, clearly earmarked deposit account to cover the bank's maximum liability under the standby letter of credit or ineligible acceptance.

official document · source cfr-2024 · id 12:§ 208.24