L/C is a good master but bad servant. why?
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Title: L/C is a good master but bad servant. why?

Essay Details:

Subject: Business
Author: Devon J
Date: September 10, 2014
Level: University
Grade: A
Length: 4 / 1100

Essay text:

They are also used in the land development process to ensure that approved public facilities (streets, sidewalks, stormwater ponds, etc.) will be built. The parties to a letter of credit are usually a beneficiary who is to receive the money, the issuing bank of whom the applicant is a client, and the advising bank of whom the beneficiary is a client. Almost all letters of credit are irrevocable, (i.e. cannot be amended or canceled without prior agreement of the beneficiary, the issuing bank and the confirming bank, if any). In executing a transaction, letters of credit incorporate functions common to giros and Traveler's cheques...

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