INTERNATIONAL / FOREING TRADE GLOSSARY
Abusive Draw - Drawing on a standby letter of credit when no violation of the
underlying contract has occurred.
Acceptance - Acceptance constitutes an unconditional obligation on the part of
the accepting party to pay...
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INTERNATIONAL / FOREING TRADE GLOSSARY
Abusive Draw - Drawing on a standby letter of credit when no violation of the
underlying contract has occurred.
Acceptance - Acceptance constitutes an unconditional obligation on the part of
the accepting party to pay the draft at maturity. A draft accepted by a bank is
called a "banker’s acceptance" whereas one accepted by a company is called a
"trade acceptance."
Account Party - Party for whom a letter of credit is opened. "Account party" and
"applicant" are the same, but sometimes one party will agree with the issuing bank
to make all payments under a letter of credit showing the name of another party
(as in the case of affiliated companies). Banks may refer to one of these parties as
the applicant and the other as the account party.
Advance Payment - Payment made by the buyer to the seller prior to shipment.
It is customary to only pay an agreed percentage of the value of the goods with
the remainder paid after shipment.
Advance Payment Bond -
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