A standby letter of credit is a guarantee to pay where the bank of the buyer promises to make the payment for purchase if the buyer fails to do so. The uniform set of rules stated by International Chamber of Commerce supervises the use of letter of credits in international trade and finance. These rules are listed under Uniform Customs and practice (UCP). The article 11 consists of the rules under UCP 500 and sets the guidelines governing the Stand by letter of credit which is internationally accepted.