Availability

In letters of credit, refers to the availability of documents in exchange for payment of the amount stated in the letter of credit.

Availability options are as follow:

  • By sight payment: payment on receipt of the documents by the issuing bank or the bank nominated in the letter of credit.
  • By deferred payment: payment after a period specified in the letter of credit, and the payment thereof at maturity.
  • By acceptance: acceptance of a draft (to be presented together with other documents) by the issuing bank or by the bank nominated in the letter of credit, and the payment thereof at maturity.
  • By negotiation: the giving of value by the nominated bank to the beneficiary for the documents presented, subject to receipt of cover from the issuing bank.