Letter of Credit
Category: Credit Transactions
What a is Letter of Credit (LC)?
It is any arrangement, however named or described, whereby a bank (issuing bank), acting at the request and on the instructions of a customer (applicant) or on its own behalf, binds itself to:
1. Pay to the order of, or accept and pay drafts drawn by a third party (Beneficiary), or
2. Authorize another bank to pay or to accept and pay such drafts, or
3. Authorizes another bank to negotiate, against stipulated document(s),
Provided, the terms and conditions of the credit are complied with (Art. 2, Uniform Customs & Practice for Documentary Credits.)
Note: They are in effect absolute undertakings to pay the money advanced or for the amount for which the credit is given on the faith of the instrument.
Related Philippine Law Resources:
Newer Philippine Law Resources:
Letter of Credit
Category: Credit Transactions
What a is Letter of Credit (LC)?
It is any arrangement, however named or described, whereby a bank (issuing bank), acting at the request and on the instructions of a customer (applicant) or on its own behalf, binds itself to:
1. Pay to the order of, or accept and pay drafts drawn by a third party (Beneficiary), or
2. Authorize another bank to pay or to accept and pay such drafts, or
3. Authorizes another bank to negotiate, against stipulated document(s),
Provided, the terms and conditions of the credit are complied with (Art. 2, Uniform Customs & Practice for Documentary Credits.)
Note: They are in effect absolute undertakings to pay the money advanced or for the amount for which the credit is given on the faith of the instrument.
Related Philippine Law Resources:
Newer Philippine Law Resources:
BATASnatin The Firm
Latest @ Forums
-
-
- Shema Corporation legal ba?
- In General Discussion
- 6 days, 14 hours ago
-
-
-
- foreclosed property, i need guides please help me
- In I Need A Lawyer!
- 2 weeks, 3 days ago
-
-
-
- i cant access even the demo
- In Law MCQuizzer
- 2 weeks, 3 days ago
-
Popular
- 1
- 2
- 3
SUGGESTED ANSWERS …
ANSWERS TO BAR EXAMINATION QUESTIONS IN POLITICAL LAW ARRANGED BY TOPIC (1990 – 2006) Edited and Arranged by:Silliman University College of Law Batch 2005Updated by:DondeeD’ BAR-Retake 2007 From the ANSWERS TO BAR EXAMINATION QUESTIONS by the UP LAW COMPLEX & PHILIPPINE ASSOCIATION OF LAW SCHO...
Read moreOral Defamation l S…
Kinds and Definition of Slander or Oral Defamation Definition: Speaking of base and defamatory words which tend to prejudice another in his reputation, office, trade, business or means of livelihood Two kinds of oral or verbal defamation: (1) Grave Slander (2) Simple Slander A. Factor...
Read moreArticle I – THE NAT…
Article I – THE NATIONAL TERRITORYThe national territory of the Philippines comprises:1) the Philippine archipelago;2) all other territories over which the Philippines has sovereignty or jurisdictionPHILIPPINE ARCHIPELAGO – that body of water studded with islands which is delineated in the Treaty of...
Read moreRandom
- 1
- 2
- 3
TRIAS VS. ARANETA- …
TRIAS VS. ARANETA- EasementSellers of land may validly impose reasonable easements and restrictions as conditions for contracts of sales; the same may not be overturned by courts merely on the ground that it impacts dominical rights.FACTS:JM Tuason a...
Read moreCARRYING OVER OF EN…
CARRYING OVER OF ENCUMBRANCES IN NEW CERTIFICATE> Whenever registered land is conveyed, all subsisting encumbrances or annotations appearing in the registration book and noted on the certificate of title shall be carried over and noted on the new cer...
Read moreJaworski v. Philipp…
Jaworski v. Philippine Amusement and Gaming Corporation419 SCRA 317 (2004)While the police may essentially and generally be understood as being utilized for the advancement of whar may be considered virtuous materials, it may also be employed to regu...
Read moreFeatured
- 1
- 2
- 3
Right to Strike
SSSEA v. CA – right to strike – At present, in the absence of any legislation in government employees the right to strike, recognizing their right to do so, or regulating the exercise of such right, they are prohibited form striking by express prohi...
Read morePeople vs. Tolentin…
G.R. No. 176385, February 26, 2008 FACTS: On 13 February 1998, three separate informations of Murder and two counts of Frustrated Murder were filed before the RTC against appellants, together with accused Jimmy Trinidad and Arnel Trinidad. The murd...
Read morePerfection Of A Con…
In Oesmer, Jr., et al. v. Paraiso Dev. Corp., G.R. No. 157493, February 5, 2007, a contract to sell was entered into by the owners of a real property. They affixed their signatures but contested its validity later contending that their co-owner had n...
Read more