{
  "url": "https://classa.info/glossary/letter-of-credit",
  "title": "Letter of credit (LOC)",
  "description": "Bank-issued security for the tenant's lease obligations.",
  "oneSentenceAnswer": "Bank-issued security for the tenant's lease obligations.",
  "tldr": [
    "Bank-issued security for the tenant's lease obligations.",
    "A standby letter of credit is a common security mechanism in US institutional leases."
  ],
  "keyFacts": {
    "category": "Lease structure",
    "regionScope": "US"
  },
  "pageType": "glossary",
  "lastUpdated": "2026-04-01T00:00:00.000Z",
  "license": "CC BY 4.0 with attribution to Class A Atlas (https://classa.info).",
  "citation": "Source: Class A Atlas (https://classa.info/glossary/letter-of-credit), updated 2026-04-01T00:00:00.000Z."
}