letter of guarantee |
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Definition
Document used mainly in the Far East (China, Japan, Korea, Singapore, Taiwan, among others) whereby an importer obligates itself to accept and pay a bill of exchange on its presentment at a certain bank. The objective of this letter is to secure that bank's acceptance of an exporter's draft, for payment through its correspondent bank (where the draft will be presented).
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letter of guarantee is in the Banking, Commerce & Finance and International Trade & Relations subjects.
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