letter of credit
Commercial law. An instrument under which the issuer (usu. a bank), at a customer’s request, agrees to honor a draft or other demand for payment made by a third party (the beneficiary), as long as the draft or demand complies with specified conditions, and regardless of whether any underlying agreement between the customer and the beneficiary is satisfied.? Letters of credit are governed by Article 5 of the UCC. ¡ª Abbr. LC; L/C. ¡ª Often shortened to credit.
¡ª Also termed circular letter of credit; circular note; bill of credit. [Cases: Banks and Banking 191. C.J.S. Bills and Notes; Letters of Credit ¡ì¡ì 341¨C366, 368¨C370, 372¨C376.]
What is the legal equivalence of letter of credit in Chinese?
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