letter of credit
ˌletter of ˈcredit noun [countable]
(م.م). اعتبارنامه، ورقه اعتبار، اعتبار اسنادی، قانون فقه: اعتبارنامه، اعتبار نامه بانکی، بازرگانی: اعتبارنامه، برگه اعتبار
letter of credit (l/c) :
بازرگانی: اعتبار نامه
▼ ادامه توضیحات دیکشنری؛ پس از بنر تبلیغاتی ▼
English Dictionaryˌletter of ˈcredit noun [countable] an official letter from a bank allowing a particular person to take money from another bank
[TahlilGaran] Dictionary of Contemporary English ▲
Acronyms and AbbreviationsLetter of Credit I. An instrument of audit issued by the buyer's bank, at the buyer's request, in which the issuing bank promises to pay the seller upon presentation of documents stipulated in the terms and conditions of the audit [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
II. A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made.- An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit.- A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary.- A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults.- A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Confirmed) A letter of audit issued by one bank to which another bank added its irrevocable confirmation to pay, thereby obligating itself in the same manner as the opening bank. For example, "we hereby confirm this credit and undertake to pay drafts drawn in accordance with the terms and conditions of the letter of credit. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Cumulative) A revolving letter of credit which permits any amount not utilized during any of the specified periods to be carried over and added to the amounts available in subsequent periods. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Deferred Payment) A letter of credit issued for the purchase and financing of merchandise, similar to acceptance letter of credit, except that it requires presentation of sight drafts which are payable on installment basis usually for periods of 1 year or more. Under this type of credit, the seller is financing the buyer until the stipulated time his drafts can be presented to the bank for payment. There is a significant deference in the bank's commitment, depending on whether the negotiating bank advised or confirmed the letter of credit. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (McLean) A letter of credit which requires the beneficiary to present only a draft or a receipt for specified funds before he receives payment. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Negotiable) A letter of credit issued in such form that it allows any bank to negotiate the documents. Negotiable credits incorporate the opening bank's engagement, stating that the drafts will be duly honored on presentation, provided they comply with ail terms of the credit. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Non-Cumulative) A revolving letter of credit which prohibits the amount not utilized during the specific period to be available in the subsequent periods. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Revocable) This type of letter of credit is not as legally binding as an irrevocable credit. It can be modified or canceled without the beneficiary's consent, unless the negotiation has already taken place. The issuing bank must honor the drafts negotiated before the notice of revocation or amendment has been made. Negotiability is restricted to the advising bank and confirmation is usually not available. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Revolving) A credit which includes a provision for reinstating its face value after being drawn under within a stated period of time. This kind of credit facilitates the financing of on going regular purchases. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (Standby) One issued for the express purpose of effecting payment in the event of default. The issuing bank is prepared to pay but does not expect to as long as the underlying transaction is properly fulfilled. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲
LETTER OF CREDIT (TRAVELER'S) A letter of credit which is issued by a bank to a customer preparing for an extended trip. The customer pays for the letter of credit at the time of issuance, and a bank issues the letter for a specified period of time in the amount purchased. The bank furnishes a list of correspondent banks where drafts against the letter of credit will be honored. The bank also identifies the customer by exhibiting a specimen signature of the purchaser in the folder enclosing the list of correspondent banks. Each bank, which honors a draft, endorses on the letter of credit the date when a payment was made, the bank's name, the amount drawn against the letter of credit, and charges the issuing bank's account. [TahlilGaran] Acronyms and Abbreviations Dictionary ▲