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documentary letter of credit

   Also found in: Acronyms 0.02 sec.
documentary letter of credit

Used somewhat like cashier's checks,but with more safeguards.The typical documentary letter of credit will allow payment to a vendor upon the vendor's presentation of the letter and certain documents, such as proof the goods were placed on board a vessel for shipment to the United States.



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The first order is supported by an irrevocable documentary letter of credit.
 
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