Letter of Credit

 
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Letter of Credit

An Instrument prepared and issued by a bank on behalf of an importer which guarantees an exporter payment for their product, provided that the terms of the credit are met. A letter of credit may be either irrevocable, in which case it cannot be changed unless both parties agree, and revocable, in which case either party may unilaterally make changes.

This entry was posted in dictionary on October 11, 2017 by Tanushka.