[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR614.4810]



[Page 141]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

Subpart Q_Banks for Cooperatives and Agricultural Credit Banks Financing 

                           International Trade

 

Sec. 614.4810  Standby letters of credit.



    (a) The banks for cooperatives and agricultural credit banks are 

authorized to issue on behalf of parties eligible for financing under 

regulations Sec. 614.4010(d) or Sec. 614.4020 standby letters of 

credit that represent an obligation to the beneficiary on the part of 

the issuer:

    (1) To repay money borrowed by, advanced to, or for the account of 

the account party, or

    (2) To make payment on account of any indebtedness undertaken by the 

account party, or

    (3) To make payment on account of any default by the account party 

in the performance of an obligation.

    (b) As a matter of sound banking practice, banks for cooperatives 

and agricultural credit banks shall evaluate applications for standby 

letters of credit on the basis of the loan underwriting standards 

adopted pursuant to Sec. 614.4150 of the regulations.



[46 FR 51879, Oct. 22, 1981, as amended at 55 FR 24887, June 19, 1990; 

62 FR 4445, Jan. 30, 1997; 62 FR 51015, Sept. 30, 1997]