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Standby letter of credit |
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Standby letter of creditAgreement to guarantee invoice payments to a supplier; a standby LOC promises to pay the seller if the buyer fails to pay.Standby letter of credit Similar MatchesStandby commitmentStandby commitmentAn agreement between a corporation and investment firm that the firm will purchase whatever part of a stock issue that is offered in a rights offering that is not subscribed to in the two- to four- week standby period. Standby feeStandby feeAmount paid to an underwriter who agrees to purchase any stock that is not purchased by public investors in a rights offering. Standby agreementStandby agreementIn a rights issue, agreement that the underwriter will purchase any stock not purchased by investors. |
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