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.
DEFINITION of 'Correspondent Bank'. A financial institution that provides services on behalf of another, equal or unequal, financial institution. A correspondent bank can conduct business transactions, accept deposits and gather documents on behalf of the other financial institution.