The bank specifically nominated in the letter of credit as the bank on which a bill of exchange (draft) at a specified usance (time or term) is to be drawn.

The bank, usually but not necessarily in the beneficiary's country, through which advice of the letter of credit is sent by the issuing bank.

The party in whose favour the letter of credit is issued.

Irrevocable letter of credit to which another bank (usually the advising bank) has added its payment undertaking on the instructions of the issuing bank. This is in addition to the irrevocable undertaking of the issuing bank.

Party to whom the goods are to be consigned.

The party despatching the goods.

Another term for a bill of exchange.

Separate presentations of documents under a letter of credit.

Uniform rules for the interpretation of trade terms developed by the International Chamber of Commerce (ICC) used and recognised by buyers and sellers throughout the world.

A letter of credit under which the issuing bank gives its irrevocable undertaking that payment, acceptance or negotiation will be effected if all the terms of the letter of credit are met and the specified documents are provided. This type of letter of credit cannot be amended or cancelled without the beneficiary's consent.

The bank which issues the letter of credit on the instructions of the importer (usually, but not necessarily, the importer's own bank).

The bank specifically nominated in the letter of credit to purchase the bill of exchange (draft) drawn by the beneficiary on a drawee other than the negotiating bank. (If a letter of credit is freely negotiable, any bank willing to do so can be the negotiating bank).

The bank specifically nominated in the letter of credit to which documents (and sight bill of exchange (draft) if called for) must be presented for payment.

A letter of credit that can be cancelled or amended without prior notice to the beneficiary and may, therefore, be of little value to him.

A letter of credit under which the original beneficiary has the right to give instructions to the bank with which the letter of credit is available to transfer it in whole or in part to a third party ("second" beneficiary).

Standard rules and documentary letters of credit developed by the International Chamber of Commerce (ICC) and adopted by most countries. Virtually all letters of credit issued these days are subject to the rules.