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.
A bond backed by assets such as mortgage loans (covered mortgage bond). Covered bonds are backed by pools of mortgages that remain on the issuer's balance sheet, as opposed to mortgage-backed securities such as collateralised mortgage obligations (CMOs), where the assets are taken off the balance sheet.