[1] A time draft (or Bill of Exchange) which the drawee has accepted and is unconditionally obligated to pay at maturity. [2] Drawee’s act in receiving a draft and thus entering into the obligation to pay its value at maturity. [3] Broadly speaking, any agreement to purchase goods under specified terms.

The correspondent bank that has been asked to pass a letter of credit on to the beneficiary by the opening bank. The advising bank authenticates signatures, only, and has no other undertaking with regard to the letter of credit.

A bank which is owned by the same parent company and is “affiliated” with another bank (such as Lafayette Ambassador, Fulton Bank of New Jersey, FNB Bank, etc.)

A non-negotiable contract of carriage for air transportation between an air carrier and a shipper, or an air carrier and an airfreight forwarder. In the latter case the forwarder, as an indirect air carrier, issues its own “house” air waybill to the shipper.

Any change to the terms of a Letter of Credit (L/C). The applicant must ask the issuing bank to amend. If it is an irrevocable L/C, the issuing bank, confirming bank and beneficiary must approve any and all amendments.

Party that applies for the Letter of Credit. (Also known as the Consignee, Buyer, or the Importer).

The increase in the value of something (e.g. FX, goods, shares of stock, etc.)

The process of buying foreign exchange, stocks, bonds, and other commodities in one market and immediately selling them in another market at higher prices. In doing so, one takes advantage of the fact that there may be different prices in different markets for identical goods, FX, commodities, etc.

A time draft that has been accepted by the drawee bank. The drawee bank (accepting bank) stamps the draft “ACCEPTED”, signs and dates the time draft, and in doing so unconditionally undertakes to pay the draft at maturity.

German Bank Code (similar to a routing number – see routing number)