Letter of credit

With a letter of credit, the buyer undertakes to have the purchase price paid against the duplicate consignment note by a bank agreed with the seller in such a way that the bank confirms the letter of credit and assumes the obligation to pay. The letter of credit order is an instruction of an abstract nature with the content that a certain amount of money must be paid to the accredited party against presentation of certain documents by the accredited party.

Term-Nr.: 532

German: Akkreditiv (35)

Source: LK-Lötscher, 11.05.2020

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