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 ?
The EITF concluded an uncollateralized, irrevocable letter of credit should not be considered a form of continuing involvement by the seller-lessee to preclude sale-leaseback accounting under Statement no.
Payment Terms: 100 Percent Against Irrevocable Letter Of Credit Negotiable In Case Of Imported Sources And 98 Percent Against Inspection Certificate And Receipted Challan And Balance 2 Percent Against Receipt Note In Case Of Indigenous Sources
The Respondent shall submit a bid bond, a certified or cashier s check, or an irrevocable letter of credit in favor of or made payable to IDOA in the amount of $100,000.
Each Bid must be accompanied by Bid security in the form of a certified check, bank check, irrevocable letter of credit, or Bid bond (on the form included with the Bidding Documents) for (10) percent of the Bid total.
Check, or irrevocable Letter of Credit issued by a financial institution for ten percent (10%) of the Bid amount plus additive alternates