Glossary for Letter of Credit (L/C Glossary)

Acceptance Draft
payable at a fixed or determinable future date, upon the face of which the drawee has acknowledged in writing his/her obligation to pay at maturity.

Account Party
The party instructing the bank to open a letter of credit and on whose behalf the bank agrees to make payment. In most cases, the account party is the importer/buyer, and is also known as the applicant. Continue reading →