13:03
for RC, don't continue reading until you're sure you understood what you just read. spend mor time on the passge than the questions
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Simple English definitions for legal terms
RL/C
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A quick definition of RL/C:
RL/C stands for revolving letter of credit, which is a type of financial agreement between a bank and a customer. It allows the customer to have a line of credit that they can draw on periodically, and then repay to the bank. This type of letter of credit is useful when there will be multiple transactions or drafts under a single agreement. It is important to note that RL/C is governed by Article 5 of the UCC and is often abbreviated as LC or L/C.A more thorough explanation:
RL/C stands for revolving letter of credit, which is a type of letter of credit. A letter of credit is a legal document that a bank issues to guarantee payment to a third party (the beneficiary) on behalf of a customer (the account party). The bank agrees to pay the beneficiary if the account party fails to fulfill their obligations under a contract or agreement.
A revolving letter of credit is used when there will be multiple drafts under a single transaction or multiple transactions under a single credit. It self-renews by providing for a continuing line of credit that the beneficiary periodically draws on and the bank customer periodically repays.
For example, a company may use a revolving letter of credit to purchase goods from a supplier on an ongoing basis. The supplier can draw on the letter of credit each time they ship goods to the company, and the company will repay the bank periodically. This allows the company to have a continuous supply of goods without having to apply for a new letter of credit each time.