LC
DocumentationLetter of Credit
A bank's promise to pay the seller once documents proving shipment are presented exactly as the LC requires.
In practice
The LC dictates what the B/L must say: shipper, consignee (often to order of the bank), ports, latest shipment date, and whether forwarder's B/Ls are acceptable. Any discrepancy can delay payment. Forwarders should read the LC before issuing documents.
Seen in the wild
LC calls for a full set of clean on board OBL consigned to order of DBS Bank.