letter of credit
note in which a bank promises to provide a financial loan | ||||
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Letter of credit definition was found in categories: Business & Finance(4) Language, Idioms & Slang(2) Law(1) Sports(1) Encyclopedia(1)
Letter of credit Definition from Business & Finance Dictionaries & Glossaries
| Campbell R. Harvey's Hypertextual Finance Glossary |
Letter of credit (L.O.C.)
A form of guarantee of payment issued by a bank used to guarantee the payment of interest and repayment of principal on bond issues.
A form of guarantee of payment issued by a bank used to guarantee the payment of interest and repayment of principal on bond issues.
| BASSAM Trade, Real Estate, Mortgage, Fund,Invest, Insurance,& Tax,Terms/abbreviations/defin. |
LETTER OF CREDIT
An instrument issued by a bank that guarantees payment for goods sold on credit.
An instrument issued by a bank that guarantees payment for goods sold on credit.
| UNODC Money-Laundering Terms |
Letter of Credit
Instrument or document issued by a bank, guaranteeing the payment of a customer's drafts up to a stated amount for a specified period. Letters of Credit substitute the bank's credit for the buyer's and eliminate the seller's risk. They are used extensively in international trade.
Instrument or document issued by a bank, guaranteeing the payment of a customer's drafts up to a stated amount for a specified period. Letters of Credit substitute the bank's credit for the buyer's and eliminate the seller's risk. They are used extensively in international trade.
| Raynet Business & Marketing Glossary |
Letter of Credit
a document, usually issued by a bank, in which the issuer agrees to accept drafts, under conditions set forth in the document, to be charged against credit previously established.
a document, usually issued by a bank, in which the issuer agrees to accept drafts, under conditions set forth in the document, to be charged against credit previously established.
Letter of credit Definition from Language, Idioms & Slang Dictionaries & Glossaries
| WordNet 2.0 |
letter of credit
Noun
1. a document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit
(hypernym) document
(hyponym) commercial letter of credit
Noun
1. a document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit
(hypernym) document
(hyponym) commercial letter of credit
| hEnglish - advanced version |
letter of credit
letter of credit
n : a document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit
letter of credit
n : a document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit
Letter of credit Definition from Law Dictionaries & Glossaries
| The 'Lectric Law Library |
Letter Of Credit
A letter addressed by a bank, at the insurance and responsibility of a buyer of merchandise, to a seller, authorizing him to draw drafts to a stipulated amount under specified terms and undertaking conditionally or unconditionally to provide eventual payment for drafts.
An open or sealed letter from a merchant in one place, directed to another in another place or country, requiring him that if a person therein named or the bearer of the letter, shall have occasion to buy commodities or to want money to any particular or unlimited amount, either to procure the same or to pass his promise, bill or other engagement for it, the writer of the letter undertaking to provide him the money for the goods, to repay him by exchange, or to give him such satisfaction as he shall require, either for himself or the bearer of the letter.
These letters are either general or special. The former is directed to the writer's friends or correspondents generally, where the bearer of the letter may happen to go; the latter is directed to some particular person. When the letter is presented to the person to whow it is addressed, he either agrees to comply with the request - in which case he immediately becomes bound to fulfil all the engagements therein mentioned - or he refuses, in which case the bearer should return it to the giver without any other proceeding unless the merchant to whom the letter is directed is a debtor of the merchant who gave the letter, in which case he should procure the letter to be protested.
The debt which arises on such letter in its simplest form is between the mandator and the mandant; though it may be so conceived as to raise a debt also against the person who is supplied by the mandatory.
When the letter is purchased with money by the person wishing for the foreign credit, or is granted in consequence of a check on his cash account or procured on the credit of securities lodged with the person who granted it, or in payment of money due by him to the payee; the letter is, in its effects, similar to a bill of exchange drawn on the foreign merchant. The payment of the money by the person on whom the letter is granted raises a debt or goes into account between him and the writer of the letter; but raises no debt to the person who pays on the letter, against him to whom the money is paid.
When not so purchased, but truly an accommodation and meant to raise a debt on the person accommodated, the engagement, generally is to see paid any advances made to him or to guaranty any draft accepted or bill discounted. In such case, the compliance with the mandate raises a debt, both against the writer of the letter and against the person accredited. The bearer of the letter of credit is not considered bound to receive the money; he may use the letter as he pleases and he contracts an obligation only by receiving the money.
This entry contains material from Bouvier's Legal Dictionary, a work published in the 1850's.
A letter addressed by a bank, at the insurance and responsibility of a buyer of merchandise, to a seller, authorizing him to draw drafts to a stipulated amount under specified terms and undertaking conditionally or unconditionally to provide eventual payment for drafts.
An open or sealed letter from a merchant in one place, directed to another in another place or country, requiring him that if a person therein named or the bearer of the letter, shall have occasion to buy commodities or to want money to any particular or unlimited amount, either to procure the same or to pass his promise, bill or other engagement for it, the writer of the letter undertaking to provide him the money for the goods, to repay him by exchange, or to give him such satisfaction as he shall require, either for himself or the bearer of the letter.
These letters are either general or special. The former is directed to the writer's friends or correspondents generally, where the bearer of the letter may happen to go; the latter is directed to some particular person. When the letter is presented to the person to whow it is addressed, he either agrees to comply with the request - in which case he immediately becomes bound to fulfil all the engagements therein mentioned - or he refuses, in which case the bearer should return it to the giver without any other proceeding unless the merchant to whom the letter is directed is a debtor of the merchant who gave the letter, in which case he should procure the letter to be protested.
The debt which arises on such letter in its simplest form is between the mandator and the mandant; though it may be so conceived as to raise a debt also against the person who is supplied by the mandatory.
When the letter is purchased with money by the person wishing for the foreign credit, or is granted in consequence of a check on his cash account or procured on the credit of securities lodged with the person who granted it, or in payment of money due by him to the payee; the letter is, in its effects, similar to a bill of exchange drawn on the foreign merchant. The payment of the money by the person on whom the letter is granted raises a debt or goes into account between him and the writer of the letter; but raises no debt to the person who pays on the letter, against him to whom the money is paid.
When not so purchased, but truly an accommodation and meant to raise a debt on the person accommodated, the engagement, generally is to see paid any advances made to him or to guaranty any draft accepted or bill discounted. In such case, the compliance with the mandate raises a debt, both against the writer of the letter and against the person accredited. The bearer of the letter of credit is not considered bound to receive the money; he may use the letter as he pleases and he contracts an obligation only by receiving the money.
This entry contains material from Bouvier's Legal Dictionary, a work published in the 1850's.
Letter of credit Definition from Sports Dictionaries & Glossaries
| maritime&shipping&trade |
Letter of credit
A letter addressed by a bank, for the insurance and responsibility of a buyer of merchandise, to a seller, authorizing him to draw drafts to a stipulated amount under specified terms and undertaking conditionally or unconditionally to provide eventual payment for drafts.
A letter addressed by a bank, for the insurance and responsibility of a buyer of merchandise, to a seller, authorizing him to draw drafts to a stipulated amount under specified terms and undertaking conditionally or unconditionally to provide eventual payment for drafts.
Letter of Credit (L/C)
A document issued by a bank per instructions by a buyer of goods authorizing the seller to draw a specified sum of money under specified terms. Issued as revocable or irrevocable.
Letter of Credit (LC)
A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. Some of the specific descriptions are
Letter of credit Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Letter of credit
A letter of credit is a document issued mostly by a financial institution which usually provides an irrevocable payment undertaking (it can also be revocable, confirmed, unconfirmed, transferable or others e.g. back to back: revolving but is most commonly irrevocable/confirmed) to a beneficiary against complying documents as stated in the Letter of Credit. Letter of Credit is abbreviated as an LC or L/C, and often is referred to as a documentary credit, abbreviated as DC or D/C, documentary letter of credit, or simply as credit (as in the UCP 500 and UCP 600). Once the beneficiary or a presenting bank acting on its behalf, makes a presentation to the issuing bank or confirming bank, if any, within the expiry date of the LC, comprising documents complying with the terms and conditions of the LC, the applicable UCP and international standard banking practice, the issuing bank or confirming bank, if any, is obliged to honour irrespective of any instructions from the applicant to the contrary. In other words, the obligation to honour (usually payment) is shifted from the applicant to the issuing bank or confirming bank, if any. Non-banks can also issue letters of credit however parties must balance potential risks.
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