文档介绍：1 chapter 5 Letter of credit 2 Main contents ??1. 1. Definition Definition ; ;??2. 2. Characteristics of a L/C Characteristics of a L/C ; ;??3. 3. Parties to Letter of Credit Parties to Letter of Credit ??4. 4. Procedures of documentary credit operation Procedures of documentary credit operation ??5. 5. Types of Letter of Credit Types of Letter of Credit ?? 6. Inspection and Amendment of letter of 6. Inspection and Amendment of letter of credit credit ??7. 7. Amendment of Letter of Credit Amendment of Letter of Credit 3 1. 1. Definition Definition In simple terms, a documentary credit is a conditional bank undertaking or guarantee of payment by bank .M ore fully, it is a written undertaking a written undertaking by a bank given to the seller at the request, and in accordance with the instructions, of the buyer to effect payment up to a stated sum of money, within a prescribed time limit and against stipulated documents. 4 UCP600 Stipulates: Credit means any arrangement , however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour plying presentation. 5 What does honour mean? Honour( 兑付,或者承付) means: a. to pay at sight if the credit is available by sight payment. b. to incur incur a deferred payment undertaking and pay at maturity at maturity if the credit is available by deferred deferred payment payment . c. to accept accept a bill of exchange ( “ draft ”) drawn by the beneficiary and pay at maturity if the credit is available by acceptance. 6 What plying presentation mean? Complying presentation (相符提示) means a presentation that is in accordance with the terms and conditions of the credit , the applicable provisions of these rules and international standard banking practice (国际标准银行实务) 。 788L/ C MYTHS & LEGENDS ?? We have an L We have an L / / C so payment is assured. C so pa