As compared to LCs, SLCs typically are used to cover contingencies that potentially are more severe and which may not be trade related.

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SLCs (Standby Letters of Credit) provide a guarantee of payment in the event that certain contingencies occur, such as non-payment, non-performance, or other defaults by the beneficiary. These contingencies may not necessarily be trade-related and can potentially be more severe than those covered by LCs (Letters of Credit). Therefore, SLCs are typically used for more serious or high-value transactions.

As Compared to LCs, SLCs Typically Are Used to Cover