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Classifications of Letters of Credit: I. According To The Method of Transmission

The document classifies letters of credit into 5 categories: 1) By method of transmission as circular or specifically advised, 2) By duration of substitution as revocable or irrevocable, 3) By obligations assumed by the bank as confirmed or unconfirmed, 4) By method of reimbursement as simple or reimbursement, 5) By method of payment as negotiation, straight, sight, acceptance, or foreign currency.

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155 views4 pages

Classifications of Letters of Credit: I. According To The Method of Transmission

The document classifies letters of credit into 5 categories: 1) By method of transmission as circular or specifically advised, 2) By duration of substitution as revocable or irrevocable, 3) By obligations assumed by the bank as confirmed or unconfirmed, 4) By method of reimbursement as simple or reimbursement, 5) By method of payment as negotiation, straight, sight, acceptance, or foreign currency.

Uploaded by

Jamille
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CLASSIFICATIONS OF

LETTERS OF CREDIT
I. ACCORDING TO THE
METHOD OF TRANSMISSION:
A. CIRCULAR
B. SPECIFICALLY ADVISED

II. ACCORDING TO THE


DURATION OF THE
SUBSTITUTION OF CREDIT:
A. REVOCABLE
B. IRREVOCABLE
III. ACCORDING TO
OBLIGATIONS ASSUMED BY
THE BANK:

A. CONFIRMED
B. UNCONFIRMED
IV. ACCORDING TO THE
METHOD OF
REIMBURSEMENT:
A. SIMPLE
B. REIMBURSEMENT

V. ACCORDING TO METHOD
OF PAYMENT
A. NEGOTIATION
B. STRAIGHT
C. SIGHT
D. ACCEPTANCE
E. FOREIGN CURRENCY

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