Second beneficiary

Where a transferable letter of credit is used, party to whom part of the value of this credit is transferred.

Second Issuing bank

Bank issuing the second letter of credit in a back-to-back letter of credit transaction.

Usually the Advising bank to the prime letter of credit.

Second letter of credit

See: back-to-back letters of credit.


Party sending the goods, i.e. seller.

Sight bill

Bill of exchange payable immediately upon presentation.

Sovereign risk

Risk that a government or sovereign power will default on its payment obligations.

See also: country risk

Spot rate

Exchange rate for foreign exchange transactions for immediate or near-immediate execution.

Standby letter of credit

A letter of credit designed to be used only when the applicant defaults on another agreed method of payment.

Statement of default

Used to support utilisation of standby letter of credit.


Society for Worldwide Interbank Financial Telecommunication.

Operates the major interbank electronic communication system for financial messages (payments, letters of credit, securities transactions etc.)

Message type MT700 for letters of credit - see codes

List of SWIFT message types for letters of credit and guarantees