I have been involved in transactions where leased instruments have been used for project funding. Go back to the idea that the applicant who deposits the cash to back a bank guarantee or standby letter of credit (or other collateral instrument) is not going to risk that deposit in return for a payment of one tenth of said amount. For example, if the applicant deposits $100 million in an account to back a $100 million standby letter of credit, the applicant is not going to risk the default on any loan secured by that standby letter of credit in exchange for a lease fee payment of $3 million - ONLY A LUNATIC WOULD DO SUCH A THING ! - Therefore in order to actually use the instrument as true collateral to fund a loan that can be spent on a project you have to have the approval of the applicant for such use and exposure. The applicant has to decide to risk the call on his money in the event of default on a loan collateralized by his standby backed by his money. So you have to present the project to the applicant (e.g. real estate development) and get his approval to use his cash backed standby as collateral for a loan to develop the project. The applicant, at this point, becomes an investor in the project and he will want some controls on the expenditure of the money as well as an equity position in the project (Joint-Venture 51% of the shares). This is very complex legal work, and if you are representing the applicant you have to protect him from all possible risks other than the risk he signs up for.