AIB Tradefinance - Glossary of Terms Fri, 24 May 2013
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Latest Shipment Date
A date inserted in a Letter of Credit to compel the seller to ship the goods within a specific time period
Letter of credit
This is an irreversible guarantee given by the buyer's bank to pay a specific amount of money immediately or on a future date to the seller when he or she presents specific documents before a certain date and under the International Chamber of Commerce rules.
Letter of Credit available by acceptance
A Letter of Credit available at the counters of the issuing or nominated bank, by acceptance of a Bill of Exchange payable to the seller at a determinable future date.
Letter of Credit available by deferred payment
A Letter of Credit available at the counters of the issuing or nominated bank, by the granting of a commitment to pay the seller at a determinable future date. Used in countries where Bills of Exchange are not legally enforceable or where the use of Bills of Exchange attracts penal stamp taxes or duties.
Letter of Credit available by negotiation
A Letter of Credit available with the issuing bank, nominated bank, or, in the case of a freely negotiable Letter of Credit any bank that is authorised to negotiate the sellers Bill of Exchange and shipping documents. See Negotiation
Letter of Credit available by payment / at sight
A Letter of Credit available at the counters of the issuing bank or nominated bank, by the granting of payment (including payment of sight Bills of Exchange) once the correct documentation is received from the seller.

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