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Letters of Credit (LC, ILC & Pay Order) 

Letters of Credit (LC, ILC, Pay Order) - Cash them in for real dollars.

Value conversion depends on many factors, some fixed, some floating such as:

• Type of letter of credit varies and includes (SBLC, ILC, LC, Pay Order, etc.)
• Issuing bank rating as well as location (branch) of bank issuing the instrument
• Instrument Must Be in.... (Member section)
  

What is done with ‘Cash’ after conversion
This is becoming a paramount issue with banks converting the instrument, the preferred and acceptable method is to deposit a portion of the redeemed funds with the honoring bank, usually not less than 20% for a period of not less than six (6) months.
 

Hints

• These types of Bank Instruments can be issued to individuals, corporations, trust, pension
  funds, endowments, non profit organizations, or to any payable entity.
  Individuals who hold such an instrument may have problems with 3rd party transactions
  or banks. 
• LC, ILC, or SBLC are often ........ (Member section)
    

The Following Bank Instruments are very difficult to do at the present, and only a 'Credit Line' could be raised:

• Any Bank Instrument issued from any ........... (Member section)

The following are not currently tradable unless in US Dollars:

•     Bank Instrument issued from ............ (Member section)

More information is provided in the Member Area

Recommended further reading:
Standby letters of credit: The private primary market 
The mechanics of prime bank SLCS and guarantees 
Documentary and Standby letters of Credit