a standby letter of credit can be used to collateralize the payment obligation, so in reality it enhances an existing obligation to the level of credit worthyness of the standby instrument and issuer if the standby facility is real and performing as required.
leasing is generally only acceptable for credit enhancement when the instrument is leased with a confirmed availability for performance, otherwise it is not worth anything. In addition the beneficiary of the payment obligation needs to be fully aware of the facts and the issuer needs to have the legal credit available for performance on file and communicated.
a good standing standby letter of credit needs a reimbursement agreement from the client of the issuer, so why he would accept the risk without securing his own position does not make sense
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