The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

LETTER OF GUARANTEE Definition & Legal Meaning

Definition & Citations:

An importer self-obligates accepting a bill of exchange and, on its presentment at a certain bank, paying the stated amount, as documented in this letter. Securing that bank’s acceptance of an exporter’s draft for payment through its correspondent bank (where the draft will be presented) is the goal of this document.. Used mainly in the Far East: China, Japan, Korea, Singapore, Taiwan, among others.

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