Letters of Credit

We offer commercial and standby letters of credit to our business customers.
 
Many businesses have found that the increasing globalization of commerce has led to the need to import goods or materials.  A commercial letter of credit provides your counterparty with the confidence that payment will be made on a timely basis consistent with the applicable contract, even if your business is relatively recently established or previously unknown to the counterparty.  Through our network of correspondent banks, we are able to offer our customers commercial letters of credit in support of international trade throughout much of the world.
 
For certain transactions, businesses may be required to obtain a standby letter of credit.  A standby letter of credit obligates us to make payment when our customer fails to repay an outstanding loan or debt instrument; or when our customer fails to perform some contractual non-financial obligation.  Various customers, such as municipalities, of local businesses may require the issuance of a standby letter of credit to enter into a contract or make a purchase.
 
We typically establish a line of credit to your business, and then issue letters of credit under that line.  A fee is generally paid upon issuance of a letter of credit, with additional fees and / or interest incurred if the letter of credit is drawn upon.
 
Any of our Relationship Managers or Senior Officers would be pleased to discuss any potential needs by your business for a letter of credit.