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Financial
References > This page
Standby Letter of Credit
and Builders Letter of Credit
(Source: New
York State Banking Department)
| Bank
Name |
FIRST NATIONAL
BANK OF ROCHESTER |
| Program
Name |
STANDBY LETTER OF
CREDIT and BUILDERS LETTER OF CREDIT |
| Program
Description |
Standby Letter
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
parties.
Builders Letter of Credit: A letter of credit generally
provided to municipalities for surety as to the satisfactory completion
of projects by residential developers. |
| Eligibility
Requirements |
A business that is located
in the Bank's trading area, that is in good standing, and that
is not highly leveraged. |
| Loan
Elements |
|
| Purpose |
To guaranty payment. |
| Size |
Maximum $2 million. |
| Repayment
Terms |
At maturity. |
| Documentation
Required |
Yes. |
| Collateral
and Guarantees |
Standby Letter
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. |
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