LETTER OF CREDIT

Pronunciation (US): (GB):

Meaning:

A document issued by a bank that guarantees the payment of a customer's draft; substitutes the bank's credit for the customer's credit

Classified under:

Nouns denoting possession and transfer of possession

Hypernyms ("letter of credit" is a kind of...):

credit (money available for a client to borrow)

document (a written account of ownership or obligation)

Hyponyms (each of the following is a kind of "letter of credit"):

commercial letter of credit (a letter of credit given to a business concern for commercial purposes)