Standby Letter of Credit

A Standby Letter of Credit is an instrument that protects both the Buyer and Seller. Standby Letter of Credit is an instrument issued by the bank by which the bank substitutes its own credit for that of the borrower. Standby Letters of Credit protect a third party from defaults on financial or non-financial contractual obligations. Standby Letters of Credit are not guarantees. They are the bank's binding promise to make a money payment under certain conditions stipulated in the letter of credit.

Standby Letters of Credit benefit small business owners, sole proprietors, or non-profit organizations that have dealings with a vendor with whom they lack an established credit relationship.

Amount: Up to $250,000.

Fees: Due annually.

Collateral: Astoria Federal deposit account in the face amount of the Letter of Credit.

Terms: Irrevocable.

Repayment Method: Due upon draw down by beneficiary.

Renewal: Subject to annual review.

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Our Business Relationship Managers are dedicated to helping make your business life easier, more efficient and more profitable. We'll help you create the personalized solution for your small business. Simply click on "Ask The Expert" to send us an e-mail, call us at the numbers listed below, or click on "Locations" to find the branch and ATM nearest you. We look forward to working with you!

Astoria Federal Business Relationship Managers

Andrew Alesi - (516) 731-8977
Southern Nassau

Scott Achtziger - (516) 358-9320
Eastern Queens, Northwestern Nassau & Westchester

Joaquin Gonzalez - (718) 894-7945
Western Queens

Christopher Trakas - (631) 547-4840
Suffolk & Northeastern Nassau

Perry Shapiro - (718) 769-2330
Brooklyn & Southwestern Nassau

Douglas Gifford - (631) 207-9680
Eastern Suffolk