Standby Letter of CreditSBLC

A commercial (documentary) LC is the primary means of payment: the bank expects to pay when goods are shipped. A standby LC is a secondary, 'just in case' instrument: it is drawn only if the applicant defaults, so in most cases it expires unused.

Standby LCs developed in the United States, where banks were historically restricted from issuing guarantees. They are used to support loan repayment, performance of contracts, payment for goods on open account, bid and advance payment obligations, and borrowing by subsidiaries from foreign banks.

To claim, the beneficiary presents a demand stating that the applicant has defaulted, together with any documents specified in the standby.

Standby LCs may be governed by ISP98 (International Standby Practices, issued by the ICC) or by UCP 600 where applicable. Like guarantees, they are off-balance sheet contingent liabilities that carry credit risk and capital charges, and the bank takes counter-indemnity, margin and collateral from the applicant.

In Nepal, banks issue standby LCs and counter-guarantees, for example to back loans to foreign-invested projects, under NRB's foreign exchange directives.

वाणिज्यिक प्रतीतपत्र भुक्तानीको मुख्य माध्यम हो, जसमा सामान ढुवानी भएपछि बैंकले भुक्तानी गर्छ। स्ट्यान्डबाइ प्रतीतपत्र 'आवश्यक परेमा' प्रयोग हुने उपकरण हो, जुन निवेदकले दायित्व पूरा नगरे मात्र दाबी हुन्छ, त्यसैले धेरैजसो प्रयोगै नभई समाप्त हुन्छ।

अमेरिकामा बैंकलाई जमानत जारी गर्न बन्देज भएकाले यसको विकास भएको हो। कर्जा भुक्तानी, सम्झौता कार्यसम्पादन, खुला खाता भुक्तानी र सहायक कम्पनीको विदेशी कर्जा सुरक्षित गर्न प्रयोग हुन्छ।

यसमा ICC को ISP98 वा UCP 600 लागू हुन सक्छ। जमानतझैं वासलातबाहिरको सम्भावित दायित्व हो र बैंकले काउन्टर-इन्डेम्निटी, मार्जिन र धितो लिन्छ।