Can anyone tell me if there is a retention requirement for letters of credit after the committment has expired? Thank you.

According to the Financial Institutions Record Retention Manual 3rd Ed. Letters of Credit under International (and all related documentation) should be kept for seven (7) years after it is considered dead. Committment Letters under Commercial and Industrial should be retained for six (6) years. I would be conservative and go seven years if your LOC is tied to a committment.

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The opinions expressed are mine and do not reflect those of my employer.

Jeffery - is there an agency or regulation that mandates the retention? Thank you.

[This message has been edited by Angela (edited 09-18-2001).]

The manual that I referred to is produced by the Financial Managers Society. As stated in the introduction of the manual, all State and Federal laws and regulations were researched, with the minimum requirement being published. It does not depict which state or federal law was used as the emphasis for determining the time limit, however, each time limit would comply with each state or federal law.

I found this source to be a very effective and inexpensive tool, not just in compliance, but for all areas of the bank. It also comes available on floppy disk.

Contact Financial Managers Society at www.fmsinc.org or 1-800-ASK-4FMS.

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The opinions expressed are mine and do not reflect those of my employer.