HAB Bank works with its clients to assure that the terms of the Letter of Credit reflect the negotiations of the parties. A Standby Letter of Credit can be used for many purposes, including a bid bond, a performance bond, or support for a loan or unpaid invoices made on an open account shipment.
HAB Bank is experienced in issuing Standby Letters of Credit, and has issued these instruments for a wide variety of purposes both domestic and international.
What is a Standby Letter of Credit?
It is an undertaking by a bank on behalf of its Customer that a payment will be made at some future date in the event of a specified occurrence, standbys are commonly issued in favor of suppliers to support the ongoing purchase of goods and in cases where banks are precluded by law from issuing letters of guarantees.