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Letters of Credit (LC, ILC & Pay
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....
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.
- 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
- LC, ILC, or SBLC are often ........
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 ...........
The following are not currently tradable
unless in US Dollars:
- Bank Instrument issued
from ............ (Member section)
information is provided in the Member Area
Recommended further reading:
letters of credit: The private primary market
The mechanics of prime bank SLCS
Documentary and Standby letters