Mortgage Information | Student Loans | Auto Loans
Mortgage and Loan Terms Glossary | Doc Loan Home
 
Free Loan Advice and Financial Information  
 
Browse by Letter
   
   
   
   
   
   
   
   
   
   
 

Loan and Mortgage Terms Glossary

Standby Letter Of Credit:

A guaranty issued by a federal home loan bank on behalf of a member thrift institution wishing to enter into an interest rate swap agreement on its own. If the member institution defaults on its swap contract, the standby letter of credit obligates the district bank either to pay a stated amount to the counterparty or to assume the swap obligation of the member institution.


 
     
 
Contact | Advertising Information | Other Resources

Copyright 2002-2006 DocLoan.com