payment under reserve
Definition
Provisional payment made to the beneficiary of a letter of credit (L/C) where the documents submitted under the L/C requirements have discrepancies. The advising bank (which advances the payment) holds the balance pending confirmation from the issuing bank regarding the acceptance of documents, and has recourse against the beneficiary for the advanced payment if the issuing bank refuses to accept the documents.
payment under reserve is in the Accounting & Auditing, Banking, Commerce & Finance and International Trade & Relations subjects.
This content can be found on the following page:
http://www.businessdictionary.com/definition/payment-under-reserve.html
email to a friend print this definition cite this definition