LETTER OF CREDIT Definition & Meaning

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letter of credit

noun

an order issued by a banker allowing a person named to draw money to a specified amount from correspondents of the issuer.
an instrument issued by a banker authorizing a person named to make drafts upon the issuer up to an amount specified.

letter of credit

noun

a letter issued by a bank entitling the bearer to draw funds up to a specified maximum from that bank or its agencies
a letter addressed by a bank instructing the addressee to allow the person named to draw a specified sum on the credit of the addressor bank

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�y��vlog History and Origins

Origin of letter of credit¹

First recorded in 1635–45

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Example Sentences

Examples have not been reviewed.

A lawyer for James, Dennis Fan, in response called Trump's filing "procedurally improper" and argued Trump has not explained why he can't post his real estate or obtain a letter of credit.

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The bill would also limit the value of security deposits and letters of credit required for commercial leases.

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While customers usually pay up front and in dollars, "we had to resort to letters of credit with those buyers from Pakistan", said Muthaura.

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In March, to make up for the lost payments, the landlord used a letter of credit deposited by Twitter for $968,000.

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Go First said the groundings had also driven some lessors to "repossess aircraft, draw down letters of credit and notify further withdrawal of aircraft."

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