Letter of Credit is one of the methods by which settlement of payment takes place in a highly-secured manner. It is a conditional assurance issued by a banker on behalf of the applicant assuring the beneficiary the payment of his dues upon shipment and satisfactory compliance with the terms; conditions and stipulations set out in the letter of credit.
Normally, the International Chamber of Commerce every 10 years comes out with latest version of Uniform Customs and Practices for Documentary Credits. The latest one is being UCP-600 w.e.f 1st July, 2007.
This book explains very clearly the understanding of the letter of credit and payment settlement there under including specimen of standard format of letter plus other options of payment settlement not involving a letter of credit.
Readers will find enough material to have a thorough and clear understanding of a letter of credit and other methods of payment settlements including operational details under each option of payment meant