Letter of Credit 1
Letter of Credit 1 : (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 receipt for specified funds before receiving payment; (c) Confirmed: A revolving letter of credit that permits any amount not utilized during any of the specified periods to be carried over and added to the amounts available in subsequent periods; (d) Deferred Payment: A letter of credit issued for the purchase and financing of merchandise, similar to acceptance-type letter of credit, except that it requires presentation of sight drafts payable on an installment basis; (e) Irrevocable: An instrument that, once established, cannot be modified or cancelled without the agreement of all parties concerned; (f) Non-cumulative: A revolving letter of credit that prohibits the amount not used during the specific period to be available in the subsequent periods; (g) Restricted: A condition within the letter of credit which restricts its negotiation to a named bank; (h) Revocable: An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank; (i) Revolving: An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period; (j) Straight: A letter of credit that contains a limited engagement clause addressed to the beneficiary; state that the issuing bank promises to pay upon presentation of the required documents at its counters or the counters of the named bank; (k) Transferable: A letter of credit that allows the beneficiary to transfer in whole or in part any amount of the credit to one or more third parties provided that the aggregate of such transfers does not exceed the amount of the credit; (l) Unconfirmed: A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank
No records Found