Availability

(banking/letters of credit) 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:
(1) By sight payment: payment on receipt of the documents by the issuing bank or the bank nominated in the letter of credit.
(2) By deferred payment : payment after a period specified in the letter of credit, often calculated as number of days after the date of presentation of the documents or after the shipping date.
(3) 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.
(4) By negotiation: meaning the giving of value by the nominated bank to the beneficiary for the documents presented, subject to receipt of cover from the issuing bank.
See letter of credit; bill of exchange; negotiation.

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