Letter of credit usage has adapted to meet various ... expires five years after issuance (UCC § 5-106(d)); and an evergreen letter of credit renews automatically for an indefinite number of ...

A letter of credit is an assurance or guarantee to sellers that they will be paid for a large transaction. Letters of credit are particularly common in international or foreign exchanges.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of ...