letter of credit


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  • noun

Words related to letter of credit

a document issued by a bank that guarantees the payment of a customer's draft

References in periodicals archive ?
The Mago International decision illustrates the importance of providing simple documentary requirements in a standby letter of credit to ensure that the letter of credit beneficiary can present the required documents for payment.
The bank issued the letter of credit back in November 2007 on behalf of Crittenden Regional Hospital in West Memphis.
A letter of credit is a document from a bank guaranteeing that a seller will receive a certain sum as long as the latter provides documents that correspond with the terms of the letter of credit.
Moreover, the transferrable letter of credit is different from negotiable [9] letter of credit.
the process involves the letter of credit naming a third party Beneficiary B, usually the seller of the goods subject to the transaction," according to a (http://library.
Expiration, termination or other change in the letter of credit and the notes' structure would prompt revision of the notes rating, S&P added.
The Prime-1 rating on the CP notes is based primarily on an irrevocable, direct-pay letter of credit provided by Bank of America, N.
Bank of America, acts as the letter of credit bank, the depositary, as well as issuing and paying agent.
Where the UK company is an exporter, the letter of credit may simply be a means of payment risk mitigation, which is particularly important given the widespread recent reductions in cover provided by the credit insurance market.
A letter of credit is a legal document that a business can purchase from a bank.
A letter of credit, which is issued by banks, guarantees that a buyer's payment to a seller will be received in a timely manner.
Most banks would allow you to open what is known as a Back-to-Back Letter of Credit to your supplier as long as you give them the original letter of credit and as long as you can show them that the terms within the original letter of credit are reasonable and acceptable and there is a profit to be made.
In the event of a shortfall in funds otherwise available to pay for claims under the policy block, the ceding insurer draws under the letter of credit the shortfall amount to pay for the claims.
In two recent instances, IRS field offices attempted to treat a note collateralized by a letter of credit as immediate income under the doctrine of constructive receipt, only to be rebuffed by the IRS's national office.
As an alternative, the customer may offer the fabricator a Letter of Credit instead of the cash deposit.