An instrument of Settlement of the Payment Obligation between Buyer and Seller. An arrangement by bank for settling commercial transactions that provides a form of security for both buyer and seller upon presentation of stipulated documents that conform to the terms and conditions of the credit.
- LC-i is based on Shariah contract of Wakalah (agency)
- Sight LC-i or Usance LC-i
- Issued in Ringgit Malaysia or Foreign Currency
- LC-i must be irrevocable
- Amendment is allowed
- Specific terms and conditions may be inserted in the LC-i as a business requirement agreed upon by both parties, applicant and beneficiary