CHAPTER 13. LOANS. LIMITATIONS ON INDEBTEDNESS. BUSINESS STOCK AND SECURITIES that are CAPITAL В§ 13.12. Standby letters of credit. (a) meaning. The term standby letter of credit means a letter of credit, or similar arrangement however named or described, which represents an obligation to the beneficiary on the part of the issuing institution to repay money borrowed by or advanced to or for the account of the account party, or to make payment on account of an indebtedness undertaken by the account party, or to make payment on account of a default (including a statement of default) by the account party in the performance ofRead More →