Domestic Letter Of Credit (Structure, nature and basis of the contract)

The credit is a written commitment by which the bank, at the request of the buyer, undertakes to pay a specified amount of money within a specified period to the specified documents and, in accordance with the order of the buyer, pay to the seller. The Bank's obligation to pay is contingent and limited to the amount, duration and conditions that are mutually agreed between the parties and indicated in the text of the instrument of credit. In fact, documentary credit is a means for payment of purchased goods and an obligation by which the seller assures the receipt of the goods and goods that are sold and the buyer guarantees the receipt and accuracy of the purchased goods. With the use of domestic lending in the country, the need for the drafting of laws and regulations in this field was created and the banking and regulatory system of the country required it to develop and implement specific regulations in this field. In this regard, in the year 1380, for the first time, regulations on the LCI were announced, but after the abuse of this type of credentials by the Arya Group and the filing of the so-called macroeconomic corruption, according to the Central Bank's decree issuing domestic lending And the discounting of these LCs was stopped in the second six months of 2011. After the issuance of rigorous regulations to the past and the adoption of the internal-Rial Instruments Directive on December 17, 1994, by the Money and Credit Council, the re-issuance and rebate of the internal LC has begun.