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. — Abbr. LC; L/C. — Often shortened to credit.
— 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 §§ 341–366, 368–370, 372–376.]
双语律师李明，国际知名法学院法律专业，擅长翻译各类与
政府监管相关的法律文件。
