STP-34: Will it be necessary to provide both a Guaranty and the Letter of Credit?

Typically there is no need for both a Guaranty and a Letter of Credit. If a Bidder relies on the financial standing of a Guarantor to which a sufficient credit limit applies, a letter of credit is not necessary. If a Bidder relies on its own financial standing and the Bidder has insufficient unsecured credit, the Bidder may submit cash of a letter for security under the applicable supplier contract, in which case a Guaranty is not necessary.