A standby letter of credit payment within the preference period is not a preference.(CREDIT COLUMN)

individual of the most frequently asked questions from trade creditors is whether a drawing and a payment upon a standby letter of credit during the 90-day predilection period is recoverable as a predilection A letter of credit is a security device where a bank or other entity agrees to pay up to the amount of the alphabetic character of credit to a beneficiary that at hands all of the documents required by dint of the letter of credit. A standby alphabetic character of credit is intended to subserve as a backstop to certain payment or performance of a separate independent transaction between the alphabetic character of credit beneficiary--and