0 a letter from a bank allowing the person who has it to take a particular amount of money from a bank in another country --
1 a financial document in which a bank formally promises to pay a particular amount of money into the bank of a person selling goods if the goods are delivered by an agreed date and in an acceptable condition. Buyers often use letters of credit to buy goods from other countries: --
2 in a situation in which bonds, etc. are sold, a written promise by a bank to pay the lender if the borrower is unable to do so: --
Yet the company refuses to post any letter of credit as required by the government.
There are in fact three different entities participating in the letter of credit transaction the seller, the buyer, and the banker.
Fortunately, the firm received from its customer an extension of its letter of credit.
He has not asked for an irrevocable letter of credit seven or eight months earlier.
It puts in an impossible position an importer who has already ordered goods for which an irrevocable letter of credit has been issued.
It is not sufficient to say that the ban will affect only those goods for which an irrevocable letter of credit has been opened.
Nearly always it is done by opening a letter of credit when the goods are ready.
As recently as 20 years ago, the normal method of obtaining payment in many countries was through the letter of credit.
