Letter of Credit

Business Letter

Dear …

RE: Letter of Credit - __(Name of Company)__ __(Name/brief description of project)__

Allow this letter to officially serve as confirmation that __(Name of Financial Institution)__ has secured a line of credit in the amount of __($amount)__ under the account name of __(Name of Company)__. A hold has been placed on this line of credit, securing the funds as a guarantee to __(Name of Organization)__ for completion of __(name/brief description of project)__. The hold on this line of credit is effective __(date)__ and will remain in effect until the aforementioned project is completed and approved in writing by __(Name of Organization)__.

In the event of "failure to perform," __(Name of Financial Institution)__ agrees to disperse funds from said line of credit to __(Name of Organization)__ upon written demand from __(Name of person/position)__ with __(Name of Organization)__, accompanied by a notarized statement outlining the specific contract conditions that were breached and costs associated with rectifying same.

Once __(Name of Financial Institution)__ has received written confirmation from __(Name of person/position)__ with __(Name of Organization)__ that the said project has been satisfactorily completed in accordance with the specifications outlined in the contract, this line of credit will be restored to __(Name of Company)__.

The commitment of these funds is irrevocable and not subject to recall by __(Name of Company)__.

Yours truly,

Signature below signifies that __(Name of Company)__ concurs with this aggreement:

X__________________________, __(Title)__

Officer of Company - signature

__(Name of Company)__