Request for Amendment to an Irrevocable Documentary Credit - commbank com 2025

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An amendment to an LC signifies any change made to the terms of an LC after it has been authorised. An amendment can be made at anytime after an LC has been authorised and before its expiry date.
Also known as a commercial letter of credit, commercial credit or documentary credit. A type of letter of credit that is used as a primary means of making payments due under a contract. It is the most frequent form of payment in international trade.
The terms Letter of Credit (LC) and Documentary Letter of Credit (DLC) are often used interchangeably, but there is a subtle distinction between them. A Letter of Credit (LC) is a broad term encompassing various types of financial instruments issued by banks to guarantee payment on behalf of a buyer to a seller.
A letter of credit (LC), also known as a documentary credit or bankers commercial credit, or letter of undertaking (LoU), is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods.
In summary, SBLCs are standby guarantees used as a secondary payment method, LCs are standard financial instruments that guarantee payment upon fulfillment of conditions, and DLCs are LCs that require specific documentation to be presented by the seller for payment.
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A documentary credit can be defined as a written undertaking given by a bank (issuing bank) to the seller (beneficiary) on the instruction of the buyer (applicant) to pay at sight or at a determinable future date up to a stated amount of money.
An irrevocable letter of credit (ILOC) is a guarantee for payment issued by a bank for goods and services purchased, which cannot be cancelled during some specified time period. ILOCs are most commonly used to facilitate international trade.

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