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An irrevocable undertaking from the bank to make payment to the seller a stated sum of money against stipulated documents and compliance of the terms and conditions within a prescribed time limit.
A finance facility for domestic and international merchandise trade transactions include local purchases and importation in the form of pre-shipment and post-shipment financing.
Bills received from correspondent banks with instruction to obtain payment or acceptance from the buyer, deliver documents to the buyer against payment, or deliver documents against acceptance and/or to obtain payment on maturity date.
A document issued by the bank to the shipping company that allows the importer to collect the goods from that shipping company in the absence of a Bill of Lading.