Type of guarantee that is payable immediately upon presentation of documents specified, without inquiry as to the validity of the documents or into compliance with the underlying contract, as opposed to an "ancillary guarantee." Also called an "independen presentation of documents specified, without inquiry as to the validity of the documents or into compliance with the underlying contract, as opposed to an "ancillary guarantee." Also called an "independent guarantee." presentation of documents specified, without inquiry as to the validity of the documents or into compliance with the underlying contract, as opposed to an "ancillary guarantee." Also called an "independent guarantee."

A financing instrument issued by a bank in favor of an exporter that substitutes the bank's creditworthiness for that of the importer. instrument issued by a bank in favor of an exporter that substitutes the bank's creditworthiness for that of the importer. exporter that substitutes the bank's creditworthiness for that of the importer.

Bond issued at the request of one party to a contract in favor of the other party to the contract to protect the other party against loss in the event of default on the contract by the requesting party.

In a draft collection transaction, the formal legal process of registering that payment or acceptance of the draft has been demanded but the drawee has refused to pay or accept the draft. draft collection transaction, the formal legal process of registering that payment or acceptance of the draft has been demanded but the drawee has refused to pay or accept the draft. draft collection transaction, the formal legal process of registering that payment or acceptance of the draft has been demanded but the drawee has refused to pay or accept the draft.

Type of guarantee where the guarantor joins with one of the parties to the contract and agrees to fulfill that party's obligations if necessary, effectively co-signing the contract.

The beneficiary delivers the documents to the advising bank to negotiate on the seller's behalf.

The person or company that sells or arranges to transport goods out of a country.

When a drawee acknowledges in writing on the face of the draft that the buyer will pay the draft at maturity. (See also Draft, Drawee.)

A negotiable instrument that calls for payment of money. The drawer (or seller) orders in writing for the drawee (or buyer) to pay a specific amount of money to the drawer on a certain date. Also called a bill of exchange.

The person, company, or bank upon which a draft is drawn.

A person who assumes liability for (guarantees) the debts or obligations of another in the event of a default.

Individuals involved in a sales transaction. In domestic sales: seller and buyer. In international sales: exporter and importer. In shipping: shipper and consignee. In letters of credit: beneficiary (seller) and applicant (buyer). shipper and consignee. In letters of credit: beneficiary (seller) and applicant (buyer).

The bank that receives a letter of credit issued by the applicant's bank (the issuing bank) and forwards it to the beneficiary without assuming any responsibility or liability other than to verify the authenticity of the letter of credit. issuing bank) and forwards it to the beneficiary without assuming any responsibility or liability other than to verify the authenticity of the letter of credit.

The person or company due payment in the letter of credit. Usually the exporter (seller).

(See Draft.)

The person, company, or bank that creates the draft and receives payment.

A medium of exchange; coined or stamped currency.

Quality belonging to a document to transfer ownership of money, goods, or other items of value specified in the document by endorsement and/or delivery of the document. endorsement and/or delivery of the document.

A promise under seal to pay money; an IOU or promissory note issued as evidence of long-term indebtedness.

Type of guarantee where the guarantor joins with one of the parties to the contract and agrees to fulfill that party's obligations if necessary, effectively co-signing the contract.

The beneficiary delivers the documents to the advising bank to negotiate on the seller's behalf.

The person or company that sells or arranges to transport goods out of a country.

A right to the payment of money such as agency notes, commercial paper, T-Bills, certificates of deposit (CD's), banker's acceptances and repurchase agreements.

When a drawee acknowledges in writing on the face of the draft that the buyer will pay the draft at maturity. (See also Draft, Drawee.)

A negotiable instrument that calls for payment of money. The drawer (or seller) orders in writing for the drawee (or buyer) to pay a specific amount of money to the drawer on a certain date. Also called a bill of exchange.

The person, company, or bank upon which a draft is drawn.

The party (generally buyer/importer) for whose account a letter of credit is established.

An individual or company to whom cargo is shipped or consigned.

Indemnity given by the beneficiary of a letter of credit to the negotiating bank to induce payment despite any discrepancies that may exist in the documents.

Also known as the opening bank. It issues its commitment to the seller in the form of a letter of credit.

Writing one's name upon paper for the purpose of transferring the title.

The party (generally buyer/importer) for whose account a letter of credit is established.

Testimony of witnesses and facts presented to the court and jury by way of writings and exhibits, which impress the minds of the court and jury, to the extent that an allegation has been proven.

A legal and binding promise by a debtor (the promisor) to pay a certain sum of money to a creditor (the promisee) at a future date, usually with interest at a fixed rate.

The unsecured promissory notes of large, financially sound corporations.

Compensation paid for damage or loss sustained or anticipated.

After the seller presents the required documents to this bank for review, it will notify the issuing bank that terms of letter of credit have been met.

The account party's bank that issues or opens the credit.

The exclusive rights, powers, privileges and immunities to property, real and personal, tangible and intangible.