BANKING AFFAIRS

Detailed explanation-1: -A promissory note is a written promise by one party to make a payment of money at a date in the future. Although they may be issued by financial institutions, it is also common for other organizations or individuals to use promissory notes to confirm the agreed terms of a loan.

Detailed explanation-2: -A letter of credit, or a credit letter, is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. If the buyer is unable to make a payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.

Detailed explanation-3: -Meaning of confirmed letter of credit in English a type of letter of credit that a bank promises to pay even if the bank that gave the original letter of credit does not pay it: In the case of a confirmed letter of credit, a second guarantee of payment is added to the first.

Detailed explanation-4: -A default or failure to perform by Borrower under any document or agreement executed or delivered in connection with any letter of credit issued by Lender on behalf of Borrower or any draw by a beneficiary under any such letter of credit.