n. a document issued by a bank guaranteeing to provide a customer...

A form of guarantee of payment issued by a bank on behalf of a borrower that assures the payment of interest and repayment of principal on bond issues.

A common means of payment in international trade, this is a written commitment by a bank to make payment to an exporter on behalf of an importer, under specified conditions.

A legal commitment issued by a bank or other entity stating that, upon receipt of certain documents, the bank will pay against drafts meeting the terms of the LOC. LOCs are frequently used for risk [..]

A letter by which a bank substitutes its creditworthiness for that of the buyer. It is a conditional guarantee issued by the bank on behalf of the buyer to a seller assuring payment if the seller complies with the terms set forth in the letter of credit.

An irrevocable commitment by a bank (the issuing bank) or other issuer made at the request of a customer (the applicant third party) to pay a specified sum of money to a third party upon request, subj [..]

An agreement by a bank guaranteeing the bank will honor a customer's drafts or payments.

A method of payment for goods in which the buyer established his credit with a local bank, clearly describing the goods to be purchased, the price, the documentation required, and a time limit for com [..]

See L/C

An irrevocable commitment, usually made by a commercial bank, to honor demands for payment of a debt upon compliance with conditions and/or the occurrence of certain events specified under the terms o [..]

A letter that a bank promises to honor under stated conditions when presented to it or another bank. [D02952]

A Letter of Credit [LC] is a way of funding purchases when the seller is reluctant to despatch the goods unless they have been paid for and the buyer is reluctant to pay unless they have received the [..]

A letter from a bank or other financial institution guaranteeing payment of a certain amount on behalf of a customer. The letter of credit substitutes the bank's credit for the customer's cr [..]

This is granted by banks only to very creditworthy customers. It states that the bank will guarantee amounts that its customer incurred when purchasing goods. A letter of credit might be necessary for [..]

Definition L/C. A binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be tranferred to the seller. Basically, a letter of credit gives the sel [..]

A letter issued by an importer’s bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of lading, inspection and insurance certificates, etc.).

or documentary credit (abbreviated LC or DC) is one of the few solutions out there for businesses that need trade finance when trading goods with foreign countries. The actual letter of credit is a do [..]

a document issued to a beneficiary at the request of the issuer's customer in which the issuer (as a bank) promises to honor a demand for payment by the beneficiary in order to satisfy or secure [..]

A letter of credit is a financial document issued by the bank of a foreign buyer as a means of ensuring payment for a commercial transaction. The letter of credit make the buyer’s bank a guarantor, thus reducing the risk of payment default between the buyer and seller.

A commitment by a bank or other person that the issuer will honor drafts or other demands for payment upon full compliance with the conditions specified in the letter of credit. Letters of credit are often used in place of cash deposited with the landlord in satisfying the security deposit provisions of a lease.

A document issued by a bank at the request of a buyer of goods which authorizes the payment of a specified amount of money to the seller when certain terms are met. Liability

Conditional bank commitment issued on behalf of a customer to pay a third party in accordance with certain terms and conditions. The two primary types are commercial letters of credit and standby lett [..]

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.

LOC A guarantee of payment issued by a bank on behalf of the bank's client (Agent) that is used as "payment" should the client fail to fulfill a contractual commitment with a third part [..]

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 w [..]

A commitment, usually issued by a bank, used to guarantee the payment of principal and interest on debt issues. The LOC is drawn if the issuer is unable to make the principal and/or interest payments on a timely basis.

A form of credit enhancement provided by banks that competes with surety bonds and other forms of financial guarantees provided by insurers.

A financial instrument issued by a bank on behalf of a purchaser of goods, undertaking responsibility to pay a certain amount during a specified period, for goods delivered. LIBOR

An instrument or document issued by a bank guaranteeing the customer's payment up to a stated amount during a specified period, for which the customer is charged a fee. It substitutes the bank's credit for the buyer's and eliminates the seller's risk. It may be a commercial letter of credit, more often seen in international comm [..]

A document issued by a bank guaranteeing payment, on behalf of a buyer of goods, when all the conditions stated in the letter have been met. The importer's bank is often named “the issuing bank” [..]

A financial instrument issued by a financial institution for the benefit of a customer under which the financial institution agrees to pay money to the beneficiary thereof upon demand or upon th [..]

A specific arrangement between a lessee and one of its banks. The bank agrees that in a defined event, the lessor can look to the bank instead of the lessee to make payment. This is similar to a secur [..]

A "commercial letter of credit" is a credit document used by a buyer to pay for goods. The buyer arranges with a bank to issue a letter for the benefit of a third party who can draw funds fr [..]

A letter of credit guarantees payment by a bank on behalf of its customer who pays a fee to the bank for providing the guarantee.

An undertaking by a bank to pay (either immediately or at a future time) against specified documents on terms that the bank will be reimbursed by the Applicant.

A Letter of Credit (L/C) is payment arrangement used typically in International Trade. The issuing bank guarantees that an exporter will receive payment in full as long as certain delivery conditions have been met. In a Standby Letter of Credit, if the importer is unable to make payment on the purchase, the bank will cover the outstanding amount. A [..]

LIBOR Rate

A document established by the buyer for the purpose of financing international trade via substituting the bank’s credit for that of the buyer. A letter of credit is usually subject to the ICC Uniform [..]

A letter of credit is a letter issued by a banker to a person to whom credit is given authorizing drafts on the issuing bank or on a bank in the person's country up to a certain sum and guarantee [..]

A form of loan from a financial institution to be used only in the instance of a shortfall in net revenue for debt service (i.e., a contingent loan). A letter of credit is security provided directly to the lender/bondholders (via a bond trustee), rather than to the borrower/project sponsor.

A legal document raised by a Bank to provide assurance to a supplier that payment will be made available on presentation of certain documents.

A letter issued by a bank, usually at the request of an importer, indicating that the opening bank or another will honor drafts if they are accompanied by specified documents under specified condition [..]

A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief descript [..]

An instrument of audit issued by the buyer's bank, at the buyer's request, in which the issuing bank promises to pay the seller upon presentation of documents stipulated in the terms and con [..]

A letter of audit issued by one bank to which another bank added its irrevocable confirmation to pay, thereby obligating itself in the same manner as the opening bank. For example, "we hereby con [..]

A revolving letter of credit which permits any amount not utilized during any of the specified periods to be carried over and added to the amounts available in subsequent periods.

A letter of credit issued for the purchase and financing of merchandise, similar to acceptance letter of credit, except that it requires presentation of sight drafts which are payable on installment b [..]

A letter of credit which requires the beneficiary to present only a draft or a receipt for specified funds before he receives payment.

A letter of credit issued in such form that it allows any bank to negotiate the documents. Negotiable credits incorporate the opening bank's engagement, stating that the drafts will be duly honor [..]

A revolving letter of credit which prohibits the amount not utilized during the specific period to be available in the subsequent periods.

This type of letter of credit is not as legally binding as an irrevocable credit. It can be modified or canceled without the beneficiary's consent, unless the negotiation has already taken place. [..]

A credit which includes a provision for reinstating its face value after being drawn under within a stated period of time. This kind of credit facilitates the financing of on going regular purchases.

One issued for the express purpose of effecting payment in the event of default. The issuing bank is prepared to pay but does not expect to as long as the underlying transaction is properly fulfilled.

A letter of credit which is issued by a bank to a customer preparing for an extended trip. The customer pays for the letter of credit at the time of issuance, and a bank issues the letter for a specif [..]

This is a document that serves as a set of instructions from an importer’s bank to an overseas bank letting the latter know that it should pay the exporting company in advance. It serves as a guarante [..]

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, Co [..]

A conditional order in writing, issued by a buyer's bank, guaranteeing to pay the seller upon presentation of stipulated documents, strictly in accordance with the credit. It is strongly recommended that every exporter and importer has a copy of the "Uniform Customs and Practice for Documentary Credits", International Chamber of Comm [..]

 - Confirmed A letter of credit which has been further guaranteed by a local bank generally in the exporter's country.

 - Irrevokable A credit which cannot be revoked, cancelled or amended unless the beneficiary agrees. Virtually all L/Cs issued under UCP500.

 - Discrepancy Where a document does not comply strictly with the terms and conditions of an L/C.

 - Under Reserve Where documents with discrepancy/ies are nevertheless negotiated against an L/C, and the negotiating bank reserves the right to take back the funds from the exporter if the discrepancy is not acceptable to either the buyer or the L/C issuing bank.

An engagement, pledge or commitment from a bank or person, made at the request of a customer, stating that the issuer will honor drafts or other demands for payment upon full compliance with the conditions specified in the letter of credit.

A financial document issued by an issuing bank at the request of a buyer (applicant) to a seller (beneficiary), which guarantees payment to the seller if the terms and conditions specified in the L/C [..]

A letter of agreement issued by a bank stating that a purchaser has established a line of credit in the seller's favor and confirming that payment will be made upon presentation of certain docume [..]

A letter written by a merchant or banker to another, requesting him to credit the bearer with certain sums of money. Circular Notes are letters of credit carried by gentlemen when they travel.

The Letter of Credit is a financial Instrument issued by an importer's bank (opening bank, on behalf of the importer). The opening bank substitutes its own credit for that of the importer, and undertakes a commitment to designated beneficiary (the exporter) to pay a stated amount within a stated time frame, provided that the exporter complies [..]

A document by which a bank substitutes its creditworthiness for that of a recipient customer and buyer in a sales transaction.

A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made. An Irrevocable Letter of Cre [..]

Commercial document for organising payments-some forms offer security and minimise risk, Available through bank

A guarantee limited in time and amount. A letter of credit is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request and in accordance with the instructions of [..]

A commitment, usually issued by a bank, used to guarantee the payment of principal and interest on debt issues. The LOC is drawn if the issuer is unable to make the principal and/or interest payments [..]

A credit instrument issued by a bank that guarantees payments on behalf of its customer to a third party when certain conditions are met. Letters of Credit (L/Cs) are commonly used to finance exports. [..]

A written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and on the instructions of the buyer (applicant) to pay at sight or at a determinable future date up to a stated sum of money, within a prescribed time limit and against stipulated documents.

Document, addressed to certain bankers, or firms, and authorising them to allow stated persons or person to draw money, up to a specified amount, against the credit of the bank or firm issuing the let [..]

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.

A letter of credit containing a guarantee on the part of both the issuing and advising banks of payment to the seller, provided the seller’s documentation is in order and the terms of the letter of cr [..]

Method of payment between buyer and seller. The buyer opens a Letter of Credit in favour of the seller at his local bank by depositing the amount of the purchase price and dictating certain documents [..]

An instrument of audit issued by the buyer's bank, at the buyer's request, in which the issuing bank promises to pay the seller upon presentation of documents stipulated in the terms and con [..]

A document, issued by a bank per instructions by a buyer of goods, authorising 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.

 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.

 A letter of credit containing a guarantee on the part of both the issuing and advising banks of payment to the seller, provided the seller's documentation is in order and the terms of the let [..]

(a) Back-to-Back: A secondary letter of credit issued to a beneficiary on the strength of a primary credit; (b) Clean: A letter of credit that requires the beneficiary to present only a draft or a rec [..]

An official bank document authorising freight payment (in credit) if specified terms and conditions are fulfilled.

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. Lighter - An open or covered barge equipped with a crane and towed by a tugboat. Used mostly in harbors and inland waterways.

Method of payment between buyer and seller. A negotiable instrument in form of a letter which requests person or bank to advance money or credit to a third person. The person or bank giving the letter agrees to repay the person or bank making the advancement so long as it complies with the conditions specified in the credit.

A written undertaking form a bank guaranteeing payment.

A financial instrument obtained from a bank guaranteeing the availability of funds to be collected in the future under a reinsurance contract. Often required in overseas markets where currency restric [..]

A letter issued by an importer’s bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of lading, inspection and insurance certificates, etc.).

"Letter of credit" means a definite undertaking that satisfies the requirements of ORS 75.1040 (Formal requirements) by an issuer to a beneficiary at the request or for the account of an app [..]

Conditional bank commitment issued on behalf of a customer to pay a third party in accordance with certain terms and conditions. The two primary types are commercial letters of credit and standby lett [..]

A document issued by the bank that guarantees payment for a customer over a specified period of time and up to a specified amount.

A document issued by importers bank to its branch or agent abroad authorizing the payment of a specified sum to a person named in Letter of Credit (usually exporter from abroad). Letters of Credit are [..]

A document that facilitates the movement of goods between buyer and seller by providing a means of payment. Undertaking of the issuing bank to make payment if terms and conditions of the L/C are met. A formal letter issued by a bank that authorizes the drawing of drafts against the bank up to a fixed amount on behalf of its customers and thereby fa [..]

An instrument issued by a bank by which the bank substitutes its own credit for that of the individual or corporation that purchases the letter.

Letter of Credit is a method of advance payment for qualifying organizations under assistance agreements and certain contract awards that is negotiated and authorized by the Contracts or Agreement Off [..]

A document issued by a financial institution assuring payment. In planning it is often required to ensure that a developer can financially return a site back to its original condition after a grant of [..]

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.

(finance,banking) A document, used primarily in trade finance and issued generally by a financial institution, in which the institution promises to pay debts up to a certain limit to be acquired by [..]

A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief descript [..]

  A promise from a third party (usually a bank) for payment in the event that certain conditions are met. It is frequently used to guarantee payment of an obligation. [Chapters 11 and 24] Letter stock [..]

A form of guarantee of payment issued by a bank on behalf of a borrower that assures the payment of interest and repayment of principal on bond issues.

A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guar [..]