A Standard Clause for use where a commercial tenant provides a standby letter of credit to fund all or a portion of the tenant's lease security deposit and the deposit amount is to be reduced over the term of the lease. This Standard Clause includes typical letters of credit requirements, including so-called evergreen provisions. It also discusses the independence principle, guidelines for renewing, replacing, and transferring letters of credit, conditions to the landlord's right to draw down and apply the letter of credit to the tenant's outstanding lease obligations, and requirements for a reduction of the security deposit. This Standard Clause is tenant-favorable but includes integrated notes with important explanations and drafting and negotiating tips for both landlords and tenants. While real estate leases are generally governed by state law, this jurisdictionally neutral clause is useful and relevant in every state.