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Expiration Date

The expiration date of a Letter of Credit must be considered carefully.  The expiration date of the letter of credit must permit sufficient time if necessary to correct any mistakes found by the issuing band when the documents are presented for payment.  Given the high failure rate of initial presentation of letter of credit documents, having sufficient time to correct errors is critical.

© 2011 by Michael C. Dennis.  All Rights Reserved.  Michael is the author of "Credit and Collection Handbook." E-mail questions or comments to him at mcdennis13@yahoo.com