letter of credit means: Bank guarantee of payment, issued on behalf of the borrower by banks. It assures payment of principal and interest on bonds. (in Stock Market Dictionary)

What else does letter of credit mean?

  • The bank issues a letter authorizing the bearer of the note to withdraw a specified amount from its branches or associated agencies, as well as the bank. (in Merlin Dictionary)
  • Legal commitment from a bank, or any other entity that states the following upon receipt. (in Insurance Dictionary)