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in which the
worthiness of an
is substituted by the
for a specific
. Under documentary credit
(also called letter of credit arrangement) a bank (usually in the importer's country) undertakes to pay for a
, provided the
(such as a clean bill of lading, certificate of insurance, certificate of origin) within a specified
. In the US this arrangement is called 'commercial letter of credit.'
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Popular 'Banking, Commerce, Credit, & Finance' Terms
letter of credit (L/C)
Mentioned in These Terms
availability under documentary credit
assignment under documentary credit
uniform customs and practice for documentary credit (UCP)
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