commercial letter of credit


commercial letter of credit
An obligation issued by a bank on behalf of a bank customer to a third party. A commercial or trade letter of credit is a bank promise to pay the third party for the purchase of goods by the bank's customer. If the bank's obligation to pay is not immediate, the transaction can later give rise to a banker's acceptance.
Also called trade letter of credit.
See banker's acceptance and letter of credit. American Banker Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • commercial letter of credit — see letter of credit Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • commercial letter of credit — noun a letter of credit given to a business concern for commercial purposes • Hypernyms: ↑letter of credit * * * see letter of credit * * * commercial letter of credit, = letter of credit. (Cf. ↑letter of credit) …   Useful english dictionary

  • commercial letter of credit — See letter of credit …   Black's law dictionary

  • commercial letter of credit — See letter of credit …   Black's law dictionary

  • commercial letter of credit — See letter of credit …   Ballentine's law dictionary

  • Commercial Letter of Credit — Handelskreditbrief. 1. Begriff: Der C.L.o.C. zählt zur Gruppe der ⇡ negoziierbaren Akkreditive. Die akkreditiveröffnende Bank verpflichtet sich im C.L.o.C., Tratten, die vom Akkreditivbegünstigten auf den im C.L.o.C. benannten Bezogenen (auf die… …   Lexikon der Economics

  • letter of credit — letter of credit: a document issued to a beneficiary at the request of the issuer s customer in which the issuer (as a bank) promises to honor a demand for payment by the beneficiary in order to satisfy or secure the customer s debt compare… …   Law dictionary

  • Letter of credit — After a contract is concluded between buyer and seller, buyer s bank supplies a letter of credit to seller …   Wikipedia

  • letter of credit — 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 • Hypernyms: ↑document, ↑credit • Hyponyms: ↑commercial letter of credit, ↑traveler s letter of credit,… …   Useful english dictionary

  • letter of credit — Succinctly, a letter authorizing the addressee to pay money or supply a commodity to a third person on the credit of the writer. 24 Am J1st Guar § 20. Wilbert Ward, in his American Commercial Credits at page 9, says: A buyer who can place in the… …   Ballentine's law dictionary