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circular letter of credit

glossary / CIRCULAR LETTER OF CREDIT, 流通信用证

circular letter of credit 流通信用证由开证银行向非特定代理机构或其它银行开出的信用证，此类信用证授权开证申请人在信用证条款内对外付款，开证银行对未超出该信用证条款规定范围的汇票予以承兑。

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

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commercial letter of credit

glossary / 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.

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negotiation letter of credit

glossary / negotiation letter of credit

A letter of credit in which the issuer’s engagement runs to drawers and indorsers under a standard negotiation clause.

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documentary letter of credit

glossary / 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.

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standby letter of credit

glossary / standby letter of credit

A letter of credit used to guarantee either a monetary or a nonmonetary obligation (such as the performance of construction work), whereby the issuing bank agrees to pay the beneficiary if the bank customer defaults on its obligation. — Abbr. SL/C. — Also termed guaranty letter of credit. [Cases: Banks and Banking 191.10. C.J.S. Bills

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