It is not a violation of the automatic stay for a party who is the beneficiary of a letter of credit (L/C) to draw on the L/C after the applicant (the party for whose benefit the L/C was issued) files bankruptcy.
A Bank which has a lien on letter of credit rights (because it has a borrower who is the beneficiary of a L/C) should monitor its borrower to determine if it would be appropriate to draw under the L/C.
Letters of credit are often used in lieu of a security deposit on commercial leases. Since a lease may be rejected by a debtor in bankruptcy and the claim may become uncollectible against the debtor, letter of credit rights may become important to the Bank’s borrower / L/C beneficiary in terms of collection.