Terms of Letter of Credit

Credit letters are written for various purposes such making application for lending credit, credit reference letter or else complaining about dispute in credit report. What so ever may be the reason for writing a credit letter but the format and tone of writing is one and the same for all types of credit letters.

Ms. Elizabeth H. Remillard

Branch Manager

Globes National Banks Pvt. Ltd

3263 Hershell Hollow Road
Everett, WA 98208

29 September 2010

Subject: TERMS OF LETTER OF CREDIT

Dear, Ms. Elizabeth

Following are the terms and conditions of letter of credit which should be mentioned in the letter:-

  • The letter of credit has only one month’s validity from the date of transaction.
  • The applicant for credit must agree on conditions like confirmation, amendment, assurance and negotiation done if any.
  • After the letter of credit is signed by the authorized personnel the bank has to make payment as soon as possible.
  • Along with letter of credit copies of certain documents needs to be attached such as copy of application, copy of short term access, schedule of payments which are to be made, approval of acceptance and specimen signature copy etc.

If all the above terms and conditions is accepted and agreed by the credit applicant then the bank or credit finance institutions ask for credit reference. If reference provided is up to the mark then credit lending procedure takes place.

Thanking You

Yours Sincerely,

Mr. William M. Zeledon

3752 Timber brooks Lane
Gypsum, CO 81637

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