Revocable letter of credit

Revocable letter of credit

Assurance of funds issued by a bank that can be canceled at any time without prior notification to the beneficiary.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Revocable Letter of Credit

A letter of credit that the granting bank or the letter holder (who is the buyer of some good) may cancel under some or any circumstances. This does not provide the seller with any extra assurance that he/she will be paid on time and in the correct amount. As a result they carry higher risk than irrevocable letters of credit.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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