Definition Of

Revolving Letter of Credit

Revolving Letter of Credit is a Letter of Credit in which the value of the Letter of Credit is automatically reinstated upon utilization. A Letter of Credit may revolve by value, time or both.

Share it:

More from this Section

  • Rate of capital gain
    Rate of capital gain is the change in a security’s price relative to the initial purchase price.
  • Perfect forecast line
    Perfect forecast line refers to a 45-degree line on a graph that matches the forecast of an exchange rate with the actual exchange rate.
  • National banks
    National banks is the Federally chartered banks.
  • ALMs
    ALMs is the automated loan machines that allow a customer to enter selected bits of information and receive a loan of cash if the machines’ programmed credit standards are met.
  • Amortization
    Amortization means the allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner.
  • Earning Yield
    Earning Yield is the ratio of earning per share to market price of the share.
  • Asset management
    Asset management is the acquisition of assets that have a low rate of default and dicversificatrion of asset holdings to increase profits.