A letter of credit (LOC) is a document from a financial institution guaranteeing payment once the conditions of the LOC are met. They may be useful in a variety of commercial real estate scenarios, from purchase and sale to landlord/tenant issues.
Another description of the LOC comes from the decision in In re Lancaster Steel Co., Inc. 284 B.R. 152 (S.D. Fla. 2002): “A unique commercial vehicle designed to substitute the creditworthiness of a neutral party for that of a party interested in an underlying transaction and assure prompt payment of obligations.
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Also Included In This Month's Issue:
- Case Reviews
- Title Objections to Water and OGM Exceptions
- The Fund Offers Important Live Webinars
- Tsunami Alert! BOI Reporting
- Regulatory Compliance Corner
- Be a Real Estate Superhero!
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