Letter of credit

A financial instrument a tenant may provide as security for its obligations under a commercial lease.

A letter of credit is a financial instrument that may be provided by a tenant as security for its obligations under a commercial lease. Unlike a cash deposit, the landlord generally draws funds from the issuing bank when conditions specified in the letter of credit are met.

Important details to track

Amount.
Issuing institution.
Expiration date.
Renewal requirements.
Draw conditions.
Reduction schedules.

Lien waiver

All terms

REAL

See how letter of credit is handled across 2,236 leases.

REAL extracts and structures this field from your documents so your team can act on it — no manual abstraction required.

Get a dedicated demo