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Simple English definitions for legal terms

negotiation letter of credit

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A quick definition of negotiation letter of credit:

A negotiation letter of credit is a document issued by a bank that promises to pay a third party (the beneficiary) if they meet certain conditions. This is often used in international trade to ensure that the seller gets paid for their goods. The letter of credit can be either revocable (able to be cancelled) or irrevocable (cannot be cancelled without everyone's agreement). There are many different types of letters of credit, including those that require specific documents to be presented and those that can be paid without any additional documents.

A more thorough explanation:

A negotiation letter of credit is a type of letter of credit that allows for the transfer of funds from the issuing bank to the beneficiary through a third party, such as a bank or financial institution. This type of letter of credit is governed by Article 5 of the UCC and is often used in international trade transactions.

For example, if a company in the United States wants to purchase goods from a company in China, they may use a negotiation letter of credit to ensure that the payment is made to the Chinese company once the goods have been shipped and received. The Chinese company can present the necessary documents to a bank or financial institution in China, who will then transfer the funds from the issuing bank in the United States to the Chinese company.

Another example of a negotiation letter of credit is when a company wants to secure a loan from a bank. The bank may require a negotiation letter of credit as collateral, which allows the bank to transfer funds to the company if they default on the loan.

negotiating bank | negotiorum gestio

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15:55
under the bridge there be trolls
this guy at my school couldnt break into 160s after two months of studying so he decided to got to the police academy instead
[] baddestbunny
15:55
imagining a type of guy who thinks there's a really prestigious law school called Hys
15:55
Dk
go kys not hys
15:56
retweet
i'm stealing that that's so funny
15:56
not hys? kys!
15:56
need a colloquial abbreviation for the rest of the t14
[] baddestbunny
15:57
super excited to announce that I've finally committed to kys
hahahaha
[] baddestbunny
15:57
waspy I'm dying over here
[] baddestbunny
15:57
they got me on the phones
15:58
put yo pussy on tha phone
you became a slave so others could live free
15:58
im tryna hear sumn
not so limp anymore are we
[] baddestbunny
15:58
nah they got all my friends on the phones too
[] baddestbunny
15:59
nobody important is free
[] baddestbunny
15:59
in 1 minute I'll be on my twelfth hour of work today
Dkk
16:00
I will apply to Yale if it helps the cause.
damn that is a lot of hours
do you get off at 7pm?
Dkk
16:01
@TheAdoptedOne: he gave up too easily.
[] baddestbunny
16:01
8!
Mr. Bad Fumbla
Bag
Dkk
16:01
Commits to kys when I commit to kms the same day. What a crazy november 5th.
[] baddestbunny
16:02
kms isn't even a t50 you should r&r
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