Letters of Credit

A Letter of Credit guarantees funds from you to an entity that you do business with and are obligated to pay, as well as, guarantee performance on a construction project, or payment for goods furnished on the credit of LANB. 

We offer 2 different types of Irrevocable Letter of Credit:

  • Performance:  A Performance Letter of Credit is issued to ensure to the beneficiary (often city or county government) that funds are available for work to  be completed as contracted.
  • Financial: A Financial Letter of Credit is issued to facilitate payments related to a commercial transaction involving shipment of goods.