letter of credit
Americannoun
-
an order issued by a banker allowing a person named to draw money to a specified amount from correspondents of the issuer.
-
an instrument issued by a banker authorizing a person named to make drafts upon the issuer up to an amount specified.
noun
-
a letter issued by a bank entitling the bearer to draw funds up to a specified maximum from that bank or its agencies
-
a letter addressed by a bank instructing the addressee to allow the person named to draw a specified sum on the credit of the addressor bank
Etymology
Origin of letter of credit
First recorded in 1635–45
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
In March, to make up for the lost payments, the landlord used a letter of credit deposited by Twitter for $968,000.
From Washington Times • Jun. 15, 2023
Admiration aside, Intrater wanted to know about his investment and a promised letter of credit that secured it.
From Seattle Times • Jan. 20, 2023
That individual could then travel to any city with a Venetian bank branch and redeem the letter of credit, which could then be spent on trade goods.
From Textbooks • Jan. 1, 2020
But she gave no details and would not confirm that the centerpiece of the negotiation was the $15 billion letter of credit.
From New York Times • Sep. 2, 2019
In order to obtain a clear understanding of the working of a commercial letter of credit, we will take a concrete example and follow its every transaction.
From Readings in Money and Banking Selected and Adapted by Phillips, Chester Arthur
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
