11208Re: [Czechlist] URGENT TERM: Letter cheque
- May 2, 2002--- Irena Steinerova <irena.steinerova@...> wrote:
> Hi there,This transaction cannot work as a Letter of Credit
> Is anyone familiar with the expression above?
> "The order of cheque issuance means: ............
> issues a letter cheque in
> favour of a beneficiary in .......... and on the
> instruction an
> authorization of DZ Bank AG. ............. accepts
> responsibility for
> issuing a letter cheque and sends it directly to the
> adress of the creditor
> (beneficiary), including the name, adress and
> references of the debitor as
> well as information concerning the transaction. When
> the letter cheque is
> established and forwarded to the creditor no stop
> payment is possible
> I haven't found it in any dictionary; there are a
> few references on Google
> but no explanation. Could it be something like
(akreditiv). My guess is that this is a poor
translation from a German text (the idea derived from
the reference to AZ Bank AG) where the original term
was Briefscheck = Korrespondenzscheck in German, i.e.
correspondence cheque in English. A correspondence
cheque is a normal cheque to which a sheet is attached
for notes and details replacing an accompanying
letter. Some legislations consider correspondence
cheque as a binding order (e.g. Switzerland). It would
fit the description above as well. If the underlying
transaction is a sale of goods than the parties should
be rather referred to as buyer and seller, the seller
being the beneficiary. The reference to creditor and
debtor (not debitor) remotely suggests that the cheque
might be used as an instrument of repayment of a loan.
Technically it should be possible, however, I have
never come across such structure.
Does it make any sence at all within the context of
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