Supposing that I/my company have a sitting fund in my bank account and I approached my bank to issue me an irrevocable letter of credit in favor of an associate company (the associate company is about to render me a service but I don't trust to release money upfront to him until after he completed the work), will my bank has any right to object my request (I know that letter of credit is not issued for free, so I will be gladly ready to pay the price for it's cost) or question my decision?

Meanwhile, I hope I am correct on my thought that in the event that my bank accedes to my request and issued me the irrevocable letter of credit, they would not allow me to withdraw money above the sum stated on the issued letter of credit until after my associate collect his money upon fulfilling his obligation.