Letter Of Credit (LC)


An instrument of Settlement of the Payment Obligation between Buyer and Seller. An arrangement by bank for settling commercial transactions that provides a form of security for both buyer and seller upon presentation of stipulated documents that conform to the terms and conditions of the credit.

  • Sight LC or Usance LC
  • Issued in Ringgit Malaysia or Foreign Currency
  • LC must be irrevocable
  • Amendment allowed
  • Specific terms and conditions may be inserted in the LC as a business requirement agreed upon by both parties, applicant and beneficiary