However, fundamental differences exist between the nature of Demand Guarantees and SBLCs. For example, SBLCs are issued as a contingent liability of the issuing banks and are issued in conjunction with a primary means of underwriting being considered. In effect, SBLCs operate as their name suggests: they are in a "stand-by" position in relation to primary means of repayment. Demand Guarantees can be issued to be the primary means for repayment, in which case they are not necessarily contingent in nature. Because of the contingent and secondary means of collateral nature of the SBLC, it would be considered counter-intuitive for a bank to underwrite a loan or facility strictly on the basis of receiving an SBLC. A bank lending against an SBLC alone in such a manner would in effect be purposefully underwriting a loan with the expectation that there was to be a default, which is not something bank regulators would approve.