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LSDefine

Simple English definitions for legal terms

clean letter of credit

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A quick definition of clean letter of credit:

A clean letter of credit is a document issued by a bank that promises to pay a third party (the beneficiary) if they meet certain conditions, regardless of whether the original agreement between the customer and beneficiary is fulfilled. It is called "clean" because no documents need to be presented along with it. This type of letter of credit is often used in international transactions to ensure payment to the seller.

A more thorough explanation:

A clean letter of credit is a type of letter of credit that is payable on its presentation without the need for any accompanying documents. It is a commercial law instrument that is issued by a bank at the request of a customer, and it guarantees payment to a third party beneficiary as long as the draft or demand for payment meets certain conditions.

For example, if a seller in an international transaction requests a clean letter of credit from the buyer's bank, the bank will issue the letter of credit to the seller's bank. The seller can then present the letter of credit to their bank for payment without the need for any additional documents.

Another example is when a bank issues a clean letter of credit to a beneficiary who needs to receive payment for services rendered. The beneficiary can present the letter of credit to the bank for payment without the need for any additional documents.

In summary, a clean letter of credit is a simple and straightforward way to guarantee payment to a beneficiary without the need for additional documentation.

clean house | clean-slate rule

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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