What does the underlined portion mean?
What does the unlined part mean? It seems to me that “Standby letters of credit” has nothing to do with the phrase mentioned before it ?
The Uniform Customs and Practice for Documentary Credits, 1993 Revision, ICC Publication No. 500, shall apply to all documentary Credits (including to the extent to which they may be applicable Standby Letter(s) of Credit) where they are incorporated into the text of the Credit. They are binding on all parties thereto, unless otherwise expressly stipulated in the Credit.
Re: What does the underlined portion mean?
Detailed information regarding a standby letter of credit can be found here.
A brief summary:
How the Letter of Credit Works
You can apply for a Standby Letter of Credit, which allows you to pledge securities in your eligible account as collateral, replacing the traditional cash or bond deposit. This allows you to access credit while maintaining your portfolio’s current exposure to the market. The collateral that backs the Standby Letter of Credit must maintain a certain minimum value.