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A credit agreement is a legally binding contract documenting the terms of a loan, made between a borrower and a lender. A credit agreement is used with many types of credit, including home mortgages, credit cards, and auto loans. Credit agreements can sometimes be renegotiated under certain circumstances.
Types of letters of credit include commercial letters of credit, standby letters of credit, and revocable letters of credit. Other types of letters of credit are irrevocable letters of credit, revolving letters of credit, and red clause letters of credit.
Credit cards are one example, as are lines of credit, including home equity lines of credit (HELOCs). Non-revolving loans, such as mortgages and auto loans, have a fixed end date and a prescribed repayment schedule.
Overview of Letters of Credit Letters of credit play an integral role in many business transactions, especially international transactions. They involve three independent contracts. The first contract oftentimes arises out of the sale of goods or provision of services.
A Letter of Credit is an arrangement whereby Bank acting at the request of a customer (Importer / Buyer), undertakes to pay for the goods / services, to a third party (Exporter / Beneficiary) by a given date, on documents being presented in compliance with the conditions laid down.
Credit Support Agreement means the agreement between the Company and the Credit Support Provider evidencing the obligation of the Credit Support Provider to provide credit support to the Company in connection with the issuance by the Company of Commercial Paper.
Acceptable Credit Support means one or more letters of credit payable in Dollars for the benefit of a Borrower or one of its Subsidiaries to support payment of an Eligible Exchange Account or Eligible Account of such Loan Party, which letter of credit is in form and substance acceptable to the Administrative Agent and ...
A Letter of Credit is an arrangement whereby Bank acting at the request of a customer (Importer / Buyer), undertakes to pay for the goods / services, to a third party (Exporter / Beneficiary) by a given date, on documents being presented in compliance with the conditions laid down.