Nolo's Plain-English Law Dictionary

Legal Dictionary Home

Need Professional Help? Talk to a Lawyer

Enter Your Zip Code to Connect with a Lawyer Serving Your Area

searchbox small
Letter Of Credit
A letter from a bank or other financial institution guaranteeing payment of a certain amount on behalf of a customer. The letter of credit substitutes the bank's credit for the customer's credit. Letters of credit are used primarily to facilitate international transactions.
LA-NOLO6:DRU.1.6.3.6.20141124.29342