How to cancel an irrevocable letter of credit?

A letter of credit is a written commitment (usually by a bank) to pay money on behalf of an applicant to a beneficiary. If you can provide an alternative surety of payment or an alternative security to the beneficiary, like a deposit account or custodial control of a liquid asset, they may be willing to cancel the letter of credit for the substitute security.

Letters of credit are issued for different purposes. If it was issued to assure the delivery of goods prior to payment for those goods, shipping documents presented by a neutral third party that also attest to the quality of the goods should be sufficient to satisfy the terms of the letter of credit.

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