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 ?
Choosing a financial institution to provide investment loan - long-term investment loan, which is absorbed by detecting one or more irrevocable letters of credit issued by the Creditor by order of the Borrower in favor of the beneficiary.
government- and corporate investment-grade debt securities, precious metals, irrevocable letters of credit, equities, mutual funds, hedge funds, commercial loans, premiums receivable and reinsurance receivables
In South Africa most established importers use documentary collections varying from 60 to 120 days alter acceptance, but they also use confirmed irrevocable letters of credit.
of Jonesboro was hit with a $3 million judgment in December 2001 for charging, usurious rates on loans, it surrendered its check cashers license and dropped its irrevocable letters of credit.
Irrevocable letters of Credit from an approved bank may be used in lieu of the Performance and Payment Bonds or cash in the amount equal to one hundred percent (100%) of the contract price at the approval of the City Engineer.