A Standby Letter of Credit (L/C) is a type of the formal Letter of Credit (L/C). The Standby Letter of Credit (L/C) is the demand to pay must be in conformity with the terms and conditions of the Letter of Credit and presented prior to the expiration date, in the event that the contracting company cannot pay or perform a committed obligation to that third party.

Related Definitions in the Project: The Procurement; Project Contract