letter of credit

noun
1.
an order issued by a banker allowing a person named to draw money to a specified amount from correspondents of the issuer.
2.
an instrument issued by a banker authorizing a person named to make drafts upon the issuer up to an amount specified.

Origin:
1635–45

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
Cite This Source Link To letter of credit
Collins
World English Dictionary
letter of credit
 
n
1.  a letter issued by a bank entitling the bearer to draw funds up to a specified maximum from that bank or its agencies
2.  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

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
Cite This Source
Encyclopedia Britannica
Encyclopedia

letter of credit

order from a bank to a bank or other party abroad authorizing payment of money (up to a specified limit) to a person named in the letter. A letter of credit, unlike a bill of exchange (q.v.), is not negotiable but is cashable only by the paying bank

Learn more about letter of credit with a free trial on Britannica.com.

Encyclopedia Britannica, 2008. Encyclopedia Britannica Online.
Cite This Source
Example sentences
Showing that if a good face is a letter of recommendation, a good heart is a letter of credit.
We issued a letter of credit as a guarantee for the entire bond issuance.
Copyright © 2014 Dictionary.com, LLC. All rights reserved.
  • Please Login or Sign Up to use the Recent Searches feature