Method and system for issuing letters of credit

A method for issuing a letter of credit, the method comprising:

• issuing a facility letter of credit from a second party to a third party,
• issuing at least one standard letter of credit from the third party to at least one beneficiary,
• providing a credit facility from the second party to a company, the credit facility associated with the facility and standard letters of credit;
• and
• transferring credit risk from the credit facility to at least one investor under a participation certificate.

A method for issuing a letter of credit, the method comprising:

• issuing a facility letter of credit from a second party to a third party;
• issuing at least one standard letter of credit from the third party to at least one beneficiary;
• providing a credit facility from the second party to a company, the credit facility associated with the facility and standard letters of credit;
• transferring credit risk from the credit facility to a special purpose vehicle under a participation agreement;
• and
• transferring credit risk from the special purpose vehicle to at least one investor under a participation certificate.

A system for issuing a letter of credit, the system comprising:

• means for issuing a first letter of credit from a second party to a third party;
• means for issuing at least one second letter of credit -from the third party to at least one fourth party;
• means for providing a credit facility from the second party to a first party, the credit facility associated with the first and second letters of credit;
• and
• means for transferring credit risk from the credit facility to at least one fifth party under a participation agreement.

Computer executable software code transmitted as an information signal, the code for issuing a letter of credit, the code comprising:

• code to issue a first letter of credit from a second party to a third party;
• code to issue at least one second letter of credit from the third party to at least one fourth party;
• code to provide a credit facility from the second party to a first party, the credit facility associated with the first and second letters of credit;
• and
• code to transfer credit risk from the credit facility to at least one fifth party under a participation agreement.

A computer-readable medium having computer executable software code stored thereon, the code for issuing a letter of credit, the code comprising:

• code to issue a first letter of credit from a second party to a third party;
• code to issue at least one second letter of credit from the third party to at least one fourth party;
• code to provide a credit facility from the second party to a first party, the credit facility associated with the first and second letters of credit;
• and
• code to transfer credit risk from the credit facility to at least one fifth party under a participation agreement.

A programmed computer for issuing a letter of credit, comprising:

• a memory having at least one region for storing computer executable program code;
• and
• a processor for executing the program code stored in the memory;
• wherein the program code comprises:
• code to issue a first letter of credit from a second party to a third party;
• code to issue at least one second letter of credit from the third party to at least one fourth party;
• code to provide a credit facility from the second party to a first party, the credit facility associated with the first and second letters of credit;
• and
• code to transfer credit risk from the credit facility to at least one fifth party under a participation agreement.