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| GLOSSARY |
E
|
Endorsement
Signing on the back of a document so as to assign a right or benefit to another party.
Endorsement by the seller may be necessary for
Engagement
The assumption of payment responsibility in respect of a letter of credit, e.g. when an Advising bank agrees to add its confirmation to a credit.
Evergreen clause
Clause in a standby letter of credit to the effect that it remains in effect indefinitely - the letter of credit only expires upon receipt of advice to that effect from the Issuer. The clause may include a notice period - for example, expiry date is ninety days after advice.
Incoterms 2010 rule
Buyer bears all costs and assumes all risks once the goods been made available for collection by the buyer at the seller's premises or other named place.
If place is the seller's premises, seller is not responsible for loading goods onto buyer's vehicle.
This Incoterm rule places the minimum obligation on the seller by way of costs and risks, and the maximum obligation on the buyer.
Expiry date
The date when a letter of credit 'dies' - i.e. beyond which it cannot be used.