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Governed by universally accepted set of rules known as Uniform
Customs and Practices of the International Chamber of Commerce that
is regularly updated to keep up with the evolving technology and trade
practices |
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Payments to seller are made against complying documents stipulated,
which represent the goods and give the buyer right to them |
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Bank is putting out its credit and good name for the sake of the
buyer |
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Can be payable either at sight or at a determinable future date |
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Can be issued in foreign currency. |
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Eligible for financing via a Trust
Receipt arrangement |
