A written undertaking issued by the Issuing Bank to the seller (beneficiary) at the request of the buyer (applicant) to pay certain sum of money upon presentation of the documents to the Bank complied to the terms and conditions and within the prescribed period as stipulated in the Letter of Credit-i.
|Types of Letter of Credit-i
a) Letter of Credit-i Sight (Sight LC-i )
This type of Letter of Credit-i allows the seller to receive payment once delivery or shipment has been affected provided that the required documents have been presented to the Issuing bank or Confirming bank and all terms and conditions have been complied with.
b) Letter of Credit-i Usance (Usance LC-i )
Under this Letter of Credit-i (Usance), upon delivery of goods and upon acceptance of documents presented to the Issuing Bank or Confirming Bank, payment will be affected on a determinable future date as agreed upon by the applicant and beneficiary.