acceptance credits
One of the ways in which a letter of credit (letters of credit) may provide for payment by the nominated bank (or the issuing bank) to the seller: the seller presents a time bill (bill of exchange) with the documents which the bank will accept. The seller obtains immediate cash by discounting the accepted bill with another bank or discount house. The nominated bank pays the time bill on its maturity and then is reimbursed by the issuing bank who in turn is reimbursed by the buyer.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • bankers' acceptance — United Kingdom A form of bill of exchange issued by a customer of a bank and backed by the bank accepting primary liability upon the bill s maturity (the customer remains secondarily liable as drawer of the bill). A bankers acceptance is an… …   Law dictionary

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  • Uniform Customs and Practice for Documentary Credits — The Uniform Customs and Practice for Documentary Credits (UCP) is a set of rules on the issuance and use of letters of credit. The UCP is utilised by bankers and commercial parties in more than 175 countries in trade finance. Some 11 15% of… …   Wikipedia

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  • letters of credit — A letter of credit is an undertaking, which is irrevocable, by the customer s bank to pay a stated sum of money to the exporter, provided certain specified conditions are met including the receipt of the necessary documentation proving… …   Law dictionary

  • time bill — A bill of exchange payable at some future date, for example, 90 days after the date of the bill or after sight (that is, acceptance or refusal by the drawee), is called a time, term or usuance bill/draft. On delivery of a time bill to the drawee …   Law dictionary

  • Kleinwort Benson — Coordinates: 51°30′41″N 0°5′0″W / 51.51139°N 0.083333°W / 51.51139; 0.083333 …   Wikipedia

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