NOUN
- 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
How To Use letter of credit In A Sentence
- In 2001, the endowment would have dwindled to only $28.9 million, below the $35 million level the museum is required to maintain under the terms of a letter of credit collateralizing the bonds for the expansion.
- SELLER issues 2% PB to activate buyer's Non transferable letter of credit as agreed on contract.
- I have arranged for my branch to send a letter of credit to the branch nearest the hotel.
- Uh - huh. He agreed to pay by Irrevocable Letter of Credit.
- But as of this date, we still have not received your covering letter of credit.
- Uh - huh. He agreed to pay by Irrevocable Letter of Credit.
- The project is being backed by a letter of credit from Lasalle Bank.
- A confirmation to the letter of credit is added by the advising bank or by another bank intermediating in the transaction.
- If he flunks the test, the letter of credit is dissolved.
- So instead of carrying a letter of credit on a balance sheet, a creditor will securitize it and sell it on the open market.