Freely Negotiable and Restricted Letter of Credit
When the letter of credit does not put any condition for the negotiation of documents, it is a freely negotiable letter of credit. This letter of credit can be negotiated through any willing bank. In case, the credit names a specific bank for negotiation, then the letter of credit is a restricted credit. In case, the bank that has been named for negotiation refuses to negotiate, then it is the responsibility of the opening bank to pay as per the terms of credit.
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Types of Insurance Documents.
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