A Washington Irrevocable Standby Letter of Credit (SLC) is a form of financial guarantee that serves as a payment guarantee for the beneficiary in the event of a default by the applicant. It is a binding agreement between a bank and the applicant (issuer) in which the bank agrees to pay a certain amount to the beneficiary upon the applicant's default or failure to meet certain obligations. Walls are typically used to secure payment of goods, services, or other financial obligations, such as a loan. There are two types of Washington Irrevocable Standby Letter of Credit: commercial and financial. Commercial Walls are used to guarantee payment for goods and services and are typically issued by banks or other financial institutions. Financial Walls are used to guarantee payment of a loan or other financial obligation and are usually issued by a third party. Both types of Walls are irrevocable, meaning that they cannot be revoked or canceled without the consent of all involved parties.