Social Sciences and the Law

What is a circular letter of credit?

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The document is called a circular letter of credit when it is not addressed to any particular correspondent. In effect, a letter of credit is a draft , save that the amount is merely stated as a maximum not to be exceeded. Letters of credit, mainly used by travelers, greatly simplify nonlocal business transactions. Those who issue such letters are usually so well known that any bank will honor the letter upon proper identification.

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