In almost all cases, the letter will require that a draft drawn on the issuing bank be presented before money is paid under the credit. Such a draft will either be a sight draft, payable immediately upon presentation, or a time draft, payable a specified number of days after its presentation and acceptance by the issuing bank. Other documents will include those customarily taken by the issuer to assure itself of repayment of a loan to the account party and to assure itself that the account party is authorized to enter into the transaction.
Letters of credit may be either revocable or irrevocable. Until recently, the UCP stated that letters of credit were revocable unless the letter said otherwise. However, the latest revision changed this rule. Letters of credit are now irrevocable unless stated otherwise. Parties utilizing letters of credit usually wish for them to be irrevocable and the revision of the UCP recognized this. Now they can safely assume that a letter which does not address the is
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