The Concept of the L/C Is a Simple One,the Bank

question 6

True/False

The concept of the L/C is a simple one,the bank as intermediary between buyer and seller.In fact,though,a simple irrevocable L/C requires five steps to clear payment.

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Definitions:

Credit

The provision of resources (such as money, goods, or services) by one party to another, with the expectation that the second party will repay the first party at a later date.

Pledge

A promise or agreement to do something, often backed by an assurance in the form of property or rights as a security for the fulfillment of an obligation.

UCC

The Uniform Commercial Code is a collection of legal guidelines that regulate business dealings across the United States.

Creditor

An individual or entity that is owed money or other forms of assets by a debtor.