Same as Letter of Credit, Credit Letter

 

A Letter of Credit is a document issued by a financial institution, like Century Bancorp, that guarantees payment to the seller, known as the beneficiary, should the applicant, our clientele, not fulfil the applicant's side of the obligations in the transaction.

 

 

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardised and reliable environment.

 

 

Same as Importer, Contracted, Buyer

 

 

Same as Exporter, Contractor, Seller

 

 

The financial institution issuing the documentary credit.

 

 

A non-confirming financial institution that advises the documentary credit and any amendment without any obligation to honour that documentary credit.

 

Bank (also referred to as the seller's bank or exporter's bank), usually in the seller's country, whose primary function is to authenticate the letter of credit and advise it to the seller.

 

 

Same as Beneficiary's Bank

 

 

Financial institution obligated to honour a documentary credit issued from a separate issuing institution should that institution be unable to pay.