<Table> <Tr> <Td> </Td> <Td> This article may require cleanup to meet Wikipedia's quality standards . The specific problem is: large tracts of unreferenced texts Please help improve this article if you can . (November 2014) (Learn how and when to remove this template message) </Td> </Tr> </Table> <Tr> <Td> </Td> <Td> This article may require cleanup to meet Wikipedia's quality standards . The specific problem is: large tracts of unreferenced texts Please help improve this article if you can . (November 2014) (Learn how and when to remove this template message) </Td> </Tr> <P> In modern business practice, a letter of credit (LC) also known as a Documentary Credit, is a written commitment by a bank issued after a request by an importer (foreign buyer) that payment will be made to the beneficiary (exporter) provided that the terms and conditions stated in the LC been met, as evidenced by the presentation of specified documents . </P> <P> A letter of credit is a method of payment that is an important part of international trade . They are particularly useful where the buyer and seller may not know each other personally and are separated by distance, differing laws in each country and different trading customs . It is generally considered that Letters of Credit offer a good balance of security between the buyer and the seller, because both the buyer and seller rely upon the security of banks and the banking system to ensure that payment is received and goods are provided . In a Letter of Credit transaction the goods are consigned to the order of the issuing bank, meaning that the bank will not release control of the goods until the buyer has either paid or undertaken to pay the bank for the documents . </P>

What is the meaning of lc in banking