04-30-2010, 05:57 PM
Dears,
L/Cs may be classified as under
1. Sight - Letters of Credit (L/C - Sight)
2. Usance Letters of Credit (L/C - DA)
In case of L/C - Sight, the underlying draft is drawn at sight and the relevant documents are held by the Bank as security, until the same are retired.
In case of L/C - DA, the underlying draft is for a tenor stipulated in the L/C,payable by the customer on the due date. as 90 days etc
L/Cs may be classified as under
1. Sight - Letters of Credit (L/C - Sight)
2. Usance Letters of Credit (L/C - DA)
In case of L/C - Sight, the underlying draft is drawn at sight and the relevant documents are held by the Bank as security, until the same are retired.
In case of L/C - DA, the underlying draft is for a tenor stipulated in the L/C,payable by the customer on the due date. as 90 days etc
