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letter of credit

Definition of letter of credit

  1. 1 :  a letter addressed by a banker to a correspondent certifying that a person named therein is entitled to draw on the writer's credit up to a certain sum

  2. 2 :  a letter addressed by a banker to a person to whom credit is given authorizing drafts on the issuing bank or on a bank in the person's country up to a certain sum and guaranteeing to accept the drafts if duly made



1645

First Known Use of letter of credit

1645


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