12 C.F.R. § 960.1 Definitions.
Title 12 - Banks and Banking
As used in this part: Applicant means a person or entity at whose request or for whose account a standby letter of credit is issued. Beneficiary means a person or entity who, under the terms of a standby letter of credit, is entitled to have its complying presentation honored. Confirm means to undertake, at the request or with the consent of the issuer, to honor a presentation under a standby letter of credit issued by a member or housing associate. Document means a draft or other demand, document of title, investment security, certificate, invoice, or other record, statement, or representation of fact, law, right, or opinion that is presented under the terms of a standby letter of credit. Investment grade means: (1) A credit quality rating in one of the four highest credit rating categories by an NRSRO and not below the fourth highest credit rating category by any NRSRO; or (2) If there is no credit quality rating by an NRSRO, a determination by a Bank that the issuer, asset or instrument is the credit equivalent of investment grade using credit rating standards available from an NRSRO or other similar standards. Issuer means a person or entity that issues a standby letter of credit. Presentation means delivery of a document to an issuer, or an entity that has undertaken a confirmation at the request or with the consent of the issuer, for the giving of value under a standby letter of credit. Residential housing finance means: (1) The purchase or funding of “residential housing finance assets,” as that term is defined in §950.1 of this chapter; or (2) Other activities that support the development or construction of residential housing. SHFA associate means a housing associate that is a “state housing finance agency,” as that term is defined in §926.1 of this chapter, and that has met the requirements of §926.3(b) of this chapter. Standby letter of credit means a definite undertaking by an issuer on behalf of an applicant that represents an obligation to the beneficiary, pursuant to a complying presentation: to repay money borrowed by, advanced to, or for the account of the applicant; to make payment on account of any indebtedness undertaken by the applicant; or to make payment on account of any default by the applicant in the performance of an obligation. The term standby letter of credit does not include a commercial letter of credit, or any short-term self-liquidating instrument used to finance the movement of goods. [63 FR 65699, Nov. 30, 1998, as amended at 65 FR 8265, Feb. 18, 2000; 65 FR 44431, July 18, 2000. Redesignated and amended at 67 FR 12853, Mar. 20, 2002]
Title 12: Banks and Banking
PART 960—STANDBY LETTERS OF CREDIT
§ 960.1 Definitions.
