Dictionary
letter of credit
Definition of LETTER OF CREDIT
1
: a letter addressed by a banker to a correspondent certifying that a person named therein is entitled to draw on the writer's credit up to a certain sum
2
: a letter addressed by a banker to a person to whom credit is given authorizing drafts on the issuing bank or on a bank in the person's country up to a certain sum and guaranteeing to accept the drafts if duly made
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First Known Use of LETTER OF CREDIT
1645
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