letter of credit

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.


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World English Dictionary
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

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