Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
circular letter of credit.
See LETTER OF CREDIT.
clean letter of credit
See LETTER OF CREDIT.
commercial letter of credit
A letter of credit used as a method of payment in a sale of goods (esp. in an international transaction), with the buyer being the issuer's customer and the seller being the beneficiary, so that the seller can obtain payment directly from the issuer instead of from the buyer.
confirmed letter of credit
A letter of credit that directly obligates a financing agency (such as a bank) doing business in the seller's financial market to a contract of sale. UCC ยง 2-325(3).
documentary letter of credit
A letter of credit that is payable when presented with another document, such as a certificate of title or invoice. - Abbr. DL/C. Cf. clean letter of credit.
export letter of credit
A commercial letter of credit issued by a foreign bank, at a foreign buyer's request, in favor of a domestic exporter.
general letter of credit
See LETTER OF CREDIT. i
guaranty letter of credit
See standby letter of credit.
guaranty letter of credit.
See standby letter of credit under LETTER OF CREDIT. guaranty of collection. See GUARANTY.
import letter of credit.
See LETTER OF CREDIT.
irrevocable letter of credit
See LETTER OF CREDIT.
letter of credit
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. o Letters of credit are governed by Article 5 of the UCC. - Abbr. LC; L/C. - Often shortened to credit. - Also termed circular letter of credit; circular note; bill of credit "There is some confusion over the exact nature of credits. They resemble a number of commercial devices that are not credits. Often, there is confusion between letters of credit and guaranties, and occasionally between letters of credit and lines of credit. In the credit transaction itself, it is important to distinguish the credit from other contracts and from the acceptance. Generally, the broad credit transaction consists of three separate relationships. These include those that are (1) between the issuer and the beneficiary; (2) between the beneficiary and the account party; and (3) between the account party and the issuer. The first is the letter-of-credit engagement. The second is usually called the underlying contract, and the third is called the application agreement." John F. Dolan, The Law of Letters of Credit 9 2.01, at 2-2 (1984). "A credit is an original undertaking by one party (the issuer) to substitute his financial strength for that of another (the account party), with that undertaking to be triggered by the presentation of a draft or demand for payment and, often, other documents. The credit arises in a number of situations, but generally the account party seeks the strength of the issuer's financial integrity or reputation so that a third party (the beneficiary of the credit) will give value to the account party." John F. Dolan, The Law of Letters of Credit 9 2.02, at 2-3 (1984).
negotiation letter of credit
See LETTER OF CREDIT.
open letter of credit
See LETTER OF CREDIT,
revocable letter of credit
See LETTER OF CREDIT.
revolving letter of credit
A letter of credit that self-renews by providing for a continuingline of credit that the beneficiary periodically draws on and the customer periodically re pays. ( A revolving letter of credit is used when there will be multiple drafts under asingle transaction or multiple transactions under a single credit. - Abbr. RL/C.
special letter of credit
A letter of credit addressed to a particular individual, firm, or corporation. Cf. general letter of credit.
standby letter of credit
See LETTER OF CREDIT.
straight letter of credit
A letter of credit requiring that drafts drawn under it be presented to a specified party.
suicide letter of credit
See clean letter of credit.
time letter of credit
A letter of credit that is duly honored by the issuer accepting drafts drawn under it. - Also termed acceptance credit; usance credit.
transferable letter of credit
A letter of credit that authorizes the beneficiary to assign the right to draw under it.
traveler's letter of credit
See LETTER OF CREDIT.