revolving letter of credit
(banking) A letter of credit which is automatically restored to its full amount after the completion of each documentary exchange.
The number of utilizations and the period of time within which these must take place are specified in the documentary letter of credit. The revolving letter of credit is used when a purchaser wishes to have certain partial quantities of the ordered goods delivered at specified intervals (multiple delivery contract) and when multiple documents are presented for this purpose. Such credit may be cumulative or non-cumulative. See letter of credit.