Document background
The LC Letter of Credit is a fundamental instrument in international trade finance, providing payment security to parties involved in cross-border transactions. Used extensively when parties seek a secure payment method with bank assurance, it is particularly valuable when dealing with new trading partners or in countries with different legal systems. Under Irish law, Letters of Credit incorporate both domestic banking regulations and international standards, particularly the UCP 600 rules. This document type is essential when exporters require payment guarantee from a reliable bank before shipping goods, or when importers need to demonstrate their creditworthiness through their bank's commitment. The LC specifies all terms including payment amount, currency, required documents, and timeframes, while operating within Ireland's robust financial services regulatory framework and EU financial regulations.
