letter of credit
Definition of letter of credit
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 : 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
First Known Use of letter of credit
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Britannica.com: Encyclopedia article about "letter of credit"
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