L/C is a good master but bad servant. why?

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Issue:

Business

 

Written by:

Phyllis E

 

Date added:

May 1, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

4 / 1100

 

Was viewed:

6626 times

 

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Essay content:

They are also used in the land development process to ensure that approved public facilities (streets, sidewalks, stormwater ponds, etc.) will be built. The parties to a letter of credit are usually a beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advising bank of whom the beneficiary is a client...
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Almost all letters of credit are irrevocable, (i.e. cannot be amended or canceled without prior agreement of the beneficiary, the issuing bank and the confirming bank, if any). In executing a transaction, letters of credit incorporate functions common to giros and Traveler's cheques. Typically, the documents a beneficiary has to present in order to avail himself of the credit, are commercial invoice, bill of lading, insurance documents...
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