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A documentary letter of credit (DLC) is a guarantee of from the issuer (i.e. issuing bank) to the beneficiary that the issuer will pay the beneficiary money when the beneficiary provides certain documents to the issuer in a certain manner time and place.
It is a guarantee of payment issued by a bank/FI on behalf of a client that is used as payment in case of default by the applicant.
A Guarantee is a promise of payment from the Guarantor to the Beneficiary that the Guarantor will pay the beneficiary when the beneficiary submits certain documents or makes a specific demand to the Guarantor in a certain manner time or place.
It is a document is issued by banks or financial institutions on behalf of clients, demonstrating intent and capability (both financially and legally) to enter into a financial transaction. RWA’s are often also referred to as bank comfort letters.
A documentary letter of credit (DLC) is a guarantee of from the issuer (i.e. issuing bank) to the beneficiary that the issuer will pay the beneficiary money when the beneficiary provides certain documents to the issuer in a certain manner time and place.
It is a guarantee of payment issued by a bank/FI on behalf of a client that is used as payment in case of default by the applicant.
A Guarantee is a promise of payment from the Guarantor to the Beneficiary that the Guarantor will pay the beneficiary when the beneficiary submits certain documents or makes a specific demand to the Guarantor in a certain manner time or place.
It is a document is issued by banks or financial institutions on behalf of clients, demonstrating intent and capability (both financially and legally) to enter into a financial transaction. RWA’s are often also referred to as bank comfort letters.
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