letter of credit

(redirected from Commercial letters of credit)
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Related to Commercial letters of credit: Revocable letter of credit, Irrevocable Letters of Credit

letter of credit

n. pl. letters of credit Abbr. L/C
A letter issued by a bank authorizing the bearer to draw a stated amount of money from the issuing bank, its branches, or other associated banks or agencies.

letter of credit

n
1. (Banking & Finance) a letter issued by a bank entitling the bearer to draw funds up to a specified maximum from that bank or its agencies
2. (Banking & Finance) a letter addressed by a bank instructing the addressee to allow the person named to draw a specified sum on the credit of the addressor bank

let′ter of cred′it


n.
1. a document issued by a banker allowing the person named to draw money to a specified amount.
2. a letter from a bank notifying a person that drafts on the issuer have been authorized up to a specified amount.
[1635–45]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.letter of credit - 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
credit - money available for a client to borrow
commercial letter of credit - a letter of credit given to a business concern for commercial purposes
traveler's letter of credit, traveller's letter of credit - a letter of credit given to a traveler
document - a written account of ownership or obligation
Translations
remburssi

letter of credit

nlettera di credito
documentary letter of credit → lettera di credito documentata
References in periodicals archive ?
He attributed the long delivery period to the monetary policy and the opening of commercial letters of credit, as well as delays in the supply of cars from EIM, which is due to the company's manufacturing cycle.
Insureds shipping goods under commercial letters of credit will have access to online and on-demand certificate issuance.
Sovereign Bank's new Hong Kong subsidiary will provide commercial customers with accelerated issuance of commercial letters of credit, opened by the Bank in favor of beneficiaries located in Hong Kong and the People's Republic of China.
As of April 30, 2005, the company had unutilized credit facilities of $11,047,000 available for direct borrowing or commercial letters of credit.
5 million in financing from a sale and leaseback arrangement with a real estate investment trust involving 45 of the company's restaurants; and a $30 million three year revolving credit facility of which up to $20 million will be available to support commercial letters of credit with the remainder available to provide working capital and for other corporate needs.

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