Does this letter need an embossed seal like bonds have? Our agency requires the original bond with seal for the contract file. Am wondering if this also applies to ILC's?
28.203-2 -- Acceptability of Assets.
Paragraph (5) Irrevocable letters of credit (ILC) issued by a federally insured financial institution in the name of the contracting agency and which identify the agency and solicitation or contract number for which the ILC is provided.
As a practical matter, the federally insured financial institution has a significant risk in this process and would like to ensure that they cover their assets and will insist on providing an ILC with a raised seal. If we, the government, ever present an ILC back to that institution, without a raised seal, they will claim the letter was fraudulent and therefore void.
The point of FAR 28.203-2 is that we, the government, will accept alternatives to a formal bond. However, the ILC must conform to normal business standards which would be a registered and federally insured financial institution (which will have a device capable of producing a document with a raised seal)