04/07/2021
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Sample Letter of Credit
Finance / / July 04, 2021
A letter of credit is a document issued by a bank, insurer or credit institution in order to prove a deal between two companies.
This document must meet some specific conditions as it is that both the buyer and the seller are agree on the conditions of the transaction, including transportation, time and credit to be offers.
It must have "incoterm" which is the acceptance by the parties to carry out said deal.
This letter represents three wishes, that of the buyer, that of the seller and that of the bank or insurer that undertakes to carry out the commercial financing and can be revocable, irrevocable transferable, confirmed, unconfirmed, endorsed, or standby.
The letter of credit is the document that guarantees a deal (generally international), between two persons (physical or legal), who require said document to finalize the deals commercial. It can be endorsed by the corresponding secretariats in each country
Sample letter of credit:
Banco del Barrio S.A de C.V.B
C.P Romualdo González Pérez
Mr. Fernando Cabrera Barrios
Lic. Eduardo Estrada Gutierrez
Mexico Federal District, November 26, 2012
Mr. Present:
As provided by the corresponding law in its article 263, it is hereby made known that the contracts and transactions attached to this document, which are resolved by Banco del Barrio S.A de C.V.B, has been submitted to the corresponding authority so that the characteristics of the credit accepted.
The amount and confirmation have been received from "Banco Nacional de Alla S.A de C.V.B" who accepts the aforementioned procedure. This letter has the character of revocable, and its amount will be returned to the counterpart at the time the deal is completed, with the corresponding reduction to the commission.
Credit amount 4,980,000.00 Four million nine hundred eighty thousand pesos M / N, which will be transferred to the account of the selling company within a period of no more than 30 business days, counted from the signing of this document.
This document endorses the financing made before Banco del Barrio S.A de C.V.B, who is undertakes to pay the expenses of any of the parties, in the event of a claim or insolvency sudden.
Sincerely.
Administration of Banco del Barrio S.A de C.V.B
Seller buyer
Fernando Cabrera Barrios Eduardo Estrada Gutiérrez
Bank
Romualdo González Pérez
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