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Standby Letter of Credit

Your proof of commitment to honor a financial or performance contract

For more information call your Relationship Officer or dial (808) 694-8423

When you have concluded a contract with another party, it’s critical that those with whom you do business trust your good name and reputation. A Standby Letter of Credit1 from Bank of Hawaii gives you the credibility you need in the marketplace. It assures your counter party of your good intention to fulfill your financial or performance obligations.

Service features:

  • An irrevocable undertaking by a bank on behalf of an applicant to pay a beneficiary upon presentation of conforming documents
  • Substitutes the known and accepted credit standing of the issuing bank for that of the applicant
  • Generally used as guarantee or surety for:
    • re-payment of monies owed by the applicant to the beneficiary
    • payment of specified sums arising from applicant’s default in performing an obligation
  • Requires strict compliance of the terms and conditions
  • Independent, separate and distinct from the underlying transaction of goods and services
  • Generally issued at sight
1. Application and credit approval required.