HomeDefinitionsCompareDebt Standby letter of creditThe financial definition for Standby letter of credit:Agreement to guarantee invoice payments to a supplier; a standby LOC promises to pay the seller if the buyer fails to pay. Similar MatchesStandby agreementStandby agreementIn a rights issue, agreement that the underwriter will purchase any stock not purchased by investors. Standby 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. Click to compare definitions of Standby letter of credit Click to view definitions beginning st |