Letters of Credit
Letters of Credit
- Unsecured (guaranteed) – a letter of credit for which payment is guaranteed by the issuing bank through a bank loan.
- A revocable letter of credit may be amended or canceled by the issuing bank at any time without prior notice to the beneficiary.
- An irrevocable letter of credit may be canceled only with the consent of the payee in whose favor it was issued.
Depending on the specific terms of the letter of credit transaction:
- transferable letters of credit;
- letters of credit with a "red clause";
- revolving letters of credit
- Standby letters of credit (bank guarantee).