Letter of Credit - Utah

Letter of Credit is a legal document that was released by the Utah Department of Natural Resources - a government authority operating within Utah.

FAQ

Q: What is a letter of credit?
A: A letter of credit is a financial document that guarantees payment to a seller from a buyer.

Q: Why would someone use a letter of credit?
A: A letter of credit is commonly used in international trade to provide assurance to the seller that they will receive payment for goods or services.

Q: Are letters of credit legally binding?
A: Yes, letters of credit are legally binding contracts between the buyer, seller, and the issuing bank.

Q: How does a letter of credit work?
A: The buyer's bank issues a letter of credit to the seller's bank, which guarantees payment upon fulfillment of certain terms and conditions, such as providing proof of shipment.

Q: Can letters of credit be cancelled or modified?
A: Letters of credit can be cancelled or modified only if all parties involved agree and provide written consent.