LINES OF CREDIT
 
 
 
 

             SBLC Structure Example

 

 Standby Letters of Credit Proposed Structure – SBLC to Support Non-Depletion Account

The applicant of SBLCs/Guarantees
Entity Name 1 

The issuer of SBLCs/Guarantees
Entity Name 2

↓ 

SBLC/G'tee

Advising/Financing Bank
Bank Name

For Beneficiary
Company Name or Existing Client

Facility
Non-depletion Credit Account
Secure by SBLC/Guarantee
Loan Account debited
Deposit Account credited
Interest netting as and when the facility required

Activity/Required
Confirmation of balance to clients is required from time to time. No risk to Bank as funds do not move

 

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