|letter of credit|
|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|
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
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