Letter of Credit

L/C – irrevocable and confirmed

Letter of Credit irrevocable and confirmed with BOE (Bill of Exchange)

CI L/C – Confirmed Irrevocable Letter of Credit – that adds the endorsement of a seller’s bank(the accepting bank) to that of the buyer’s bank(the issuing bank)

BOE – Bill of Exchange

-its a written unconditional order by one party(the drawer) to another party(the drawee) to pay a certain sum rather immediately(the sight bill) or on a fixed date(the term bill) for payment of goods and/or services received.

The drawee accept the BOE by signing it, thus converting it into a post-dated check and a binding contract.

It is also called a DRAFT but while all drafts are negotiable only “to order” bills of exchange can be negotiated.

BOE contents: 
1- the term BOE -is inserted in the body of the instrument and expressed in the language employed in drawing up the instrument
2- un unconditional “order to pay” -is a determinated sum of money
3- the name – of a person or a company who is to pay(the drawee)
4- a statement of the time of payment
5- a statement of the place where the payment is to be made
6- the name of the person or the company to whom or to whose order payment is to be made
7- a statement of the date and of the place where the bill is issued
8- the signature/stamp of the person or the company who issue the BOE(the drawer)