31 C.F.R. Â§ 224.6 - Sample Power of Attorney. A surety appointing an individual as its process agent, pursuant to 31 U.S.C. Â§ 9306 and 31 C.F.R. Part 224, may use the following language to meet applicable power of attorney requirements. While use of this sample language is not required, any power of attorney filed should use substantially the same terms:
A letter of credit is a liability for the bank because it is an obligation to pay out money. On the other hand, a bank bond is essentially an insurance product, so it counts as an asset: If everything goes smoothly, the bank keeps its fee and does not need to pay the bondholder.
Bonds A bond is any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principle amount of the loan at maturity.