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Nesgroup address: misc.invest.real-estate - Date & Time for the message: 18 Apr 2005 13:13:02 -0700 /

Author of the message: steelvest@hotmail.com

Title of the message:
Re: Letter of Credit Help Please

Text of the message:
LCs have NOTHING to do with credit scores!  They are based upon hard
collateral and/or liquidity.  Also, they are standyby instruments
generally not meant to be used - BUT if used the lender/issuer can
call/sell the collateral or oterwise demand payment.
Forget pledging IRA's - that's a "prohibited transaction" that will get
you ass in a sling!  Cash value from insurance can be secured and
pledged - IF the lender will take it.
A line of cedit (say secured by a blanket second lien on imcome
properties - with release fees) could be used to support a letter or
letters of credit. When you iuse the revolver , yoiu generally pay
interest on the outstanding principal balance(s) and a 1% fee per you
on the maximum line amount.
SteelVest

>
> Is it customary to require such a high level of collateral even for
> customers with excellent credit?
>
> What are "qualified securities" that typically be used towards



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