# Letter of credit (LOC)

> Bank-issued security for the tenant's lease obligations.

**Canonical URL:** https://classa.info/glossary/letter-of-credit
**Page type:** glossary
**Last updated:** 2026-04-01T00:00:00.000Z
**License:** CC BY 4.0 with attribution to Class A Atlas (https://classa.info).

## TL;DR
- Bank-issued security for the tenant's lease obligations.
- A standby letter of credit is a common security mechanism in US institutional leases.

## Key facts
- **category**: Lease structure
- **regionScope**: US

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Citation: Source: Class A Atlas (https://classa.info/glossary/letter-of-credit), updated 2026-04-01T00:00:00.000Z.