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Y? by Alan N. Resnick* As any lender or vendor knows, a standby letter of credit is perhaps the safest and most attractive form of credit support. The letter of credit is the gold standard for credit enhancement in commercial transactions. The solvency of the financial institution issuing the letter of credit and the independence principle the recognition that the obligation of the letter of credit issuer to the beneficiary is independent of the account debtor s obligation to the ben.
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