Back-to-Back LC definition

Back-to-Back LC means an LC (also known as the "secondary credit" or "slave credit") issued against another LC (also known as the "primary credit" or "master credit") of higher value where the applicant of the secondary credit and the beneficiary of the primary credit are the same person and where the settlement of the secondary credit is obtained by presenting documents received under the secondary credit with substituted invoices or other documents to honour or negotiate the master credit.
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Back-to-Back LC means an LC (also known as the "secondary credit" or "slave credit") issued against another LC (also known as the "primary credit" or "master credit") of higher value where the applicant of the secondary credit and the beneficiary of the primary credit are the same person and (as the case may be) where the settlement of the secondary credit is obtained by presenting documents received under the secondary credit with substituted invoices or other documents to honour or negotiate the master credit.
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Examples of Back-to-Back LC in a sentence

  • After the Closing, the provisions of Section 5.12(d) shall govern the rights and obligations of the parties with respect to any Back-to-Back LC issued pursuant to this Section 5.12(c)(i).

  • Any other proceeds received by Seller from draws on any Back-to-Back LC shall be held and invested by Seller (all such proceeds, together with the earnings thereon, are herein called the “Unapplied Proceeds”) as security for the obligations of Seller under and in respect of the corresponding LN LC.

  • If Purchaser should successfully obtain the return of any Unreturned LC to Seller or should any Unreturned LC otherwise be returned to Seller or expire without being drawn and with no obligation to replace, then Seller shall be required to return the corresponding Back-to-Back LC previously issued to Seller pursuant to Section 5.12(c)(i) (and any Unapplied Proceeds attributable to previous draws on such Unreturned LC) simultaneously with the return of such Unreturned LC to Seller.

  • GECC’s receipt of the Back-to-Back LC shall be deemed to satisfy the requirement under Section 2.8 of the Credit Agreement to cash collateralize the Letters of Credit.

  • For all purposes hereof, Royal Bank of Canada, Toronto Dominion Bank, ▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ Bank, N.A. and Bank of America, N.A shall be financial institutions acceptable to Seller with respect to any Back-to-Back LC without any further request to or approval from Seller.

  • Any letter of credit accepted by Seller in replacement of a Back-to-Back LC shall thereafter be a Back-to-Back LC for all purposes hereof.

  • For the avoidance of doubt, the Back-to-Back LC shall survive such termination and discharge.