Letter of credit

Meanwhile we lived in Bruges while the gray Netherlandish winter crept over us, with little to do but drink, dice, and haunt the alchemists workshops. We spent what money we could spare on furs from the Baltic, ivories from Africa, and books, but it was not much, for the riches that were about us cost gold we did not have, except when kind friends and shrewd London merchants sent letters of credit to the Flemish merchants that we might borrow on their security. 

The WHO Centre cannot accept payment by letter of credit (L/C). 

Payment terms can be attractive, normally involving an irrevocable letter of credit (ILOC). 

This instrument is used when an institution lending securities does not require cash, but takes a third-party bank letter of credit as collateral. However, since banks typically charge 25-50 basis points for this facility, transactions of this kind are relatively rare. 

There are two types of reserve funds cash reserve funds and excess servicing spread accounts. A cash reserve fund is a separate fund into which a portion of the profits from the bonds issuance have been deposited and invested in short-term hank securities. In a default, the cash in the fund is used to compensate investors who have suffered capital losses. A cash reserve fund is often set up in conjunction with another type of credit enhancement, such as a letter of credit. 

On the other hand, the risk inherent in the flow of money pertains chiefly to untimely payment, hedging or letters of credit. ICT systems are exposed to cyber attacks, weak firewalls, failures and equipment theft. Opportunistic behaviours and transaction costs pertain to risk in relationships with suppliers. The GSR area is associated mainly with threats to the reputation of the enterprise related to unacceptable practices (e.g. child labour) that the company or its business partners may have adopted. 

The Principal Financial Officer, the Treasury Officer and other officials as designated by the Director-General are authorised to make payments which have been approved by an Approving Officer. Payments shall normally be made by written bank instruction, except for cash payments made from imprest funds. A payment shall be recorded on the accormts as of the date when the payment is processed. For the purpose of this Rule, written bank instructions shall include the follovring cheques, transfer orders, letters of credit, payment orders, and cables and other electronically transmitted instructions that are duly authenticated with the pertinent confidential code and of which a hard copy is retained. 

Documentation prepared for the Chinese customs by importers includes an invoice, a sales contract, a bill of lading, a shipping list, an insurance policy, an inspection certificate and a customs declaration form. For the import items that require a licence or a quota certificate, importers must apply to the Ministry of Foreign Trade. The Letter of Credit is a standard payment method used by Chinese importers for international transactions. The Bank of China has branches in major countries and can issue letters of credit for Chinese importers. The China Import and Export Bank finances foreign trade and has adopted international ISO standards. 

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