Irrevocable letter of credit


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Irrevocable letter of credit

Assurance of funds issued by a bank that cannot be canceled or amended without the beneficiary's approval.

Irrevocable Letter of Credit

A letter of credit that neither the bank granting it nor the letter holder (who is the buyer of some good) may cancel under any circumstances. This provides the seller with extra assurance that he/she will be paid on time and in the correct amount. Irrevocable letters of credit are most common in international commerce.
References in periodicals archive ?
Each distributor has provided Electric City Corporation with a $125 thousand dollars irrevocable letter of credit for initial purchase of the Energy Miser product.
Payment Terms: Against Irrevocable Letter Of Credit
4 An irrevocable letter of credit from an approved bank in the form attached as Exhibit K, or a cash deposit will be required instead of a Performance and Payment Bond.
The 'F1' rating on both the series A and series B notes is based on the support of an irrevocable letter of credit (LOC) issued by Fleet National Bank.
The CP issued by WCMC is fully supported by a program-wide credit and liquidity facility in the form of an irrevocable letter of credit (LOC) and liquidity agreement with Mizuho Corporate Bank, Ltd.
However, a tenant who balks at posting even a small cash security deposit may be receptive to delivering as security a clean, irrevocable letter of credit ("LC') in an even larger amount.
The contracts should include the ten percent up front payment and the balance secured by an irrevocable letter of credit as with the deal announced on October 25, 2010.
3 An irrevocable letter of credit, from an approved bank, in the form attached as Exhibit K, or a cash deposit will be required instead of a Performance and Payment Bond.
This Memorandum also includes an understanding that the parties will negotiate a long-term agreement to market, sell and possibly manufacture the TCS-1 system in the People's Republic of China, the terms of which have not been agreed upon, yet would include an irrevocable Letter of Credit in favour of Tirex, royalties on system sales and a possible equity participation.
The rating is based on an irrevocable letter of credit provided by Dexia Credit Local (currently rated 'A+/F1+' by Fitch) supporting the bonds.
Funds can be in the form of cash, cash equivalents or an irrevocable letter of credit.
3 ("PC3") of Vietnam in February of 2001, the company has completed the delivery of 75 Concentrators and has redeemed an Irrevocable Letter of Credit ("L/C") valued over $42,000 CDN.