Bill of credit

Bill of credit,

Definition of Bill of credit:

  1. IOU issued by a government, upon its credit and faith only, intended to circulate in the community as money redeemable at a future day.

  2. Written request by a party (an account holder or merchant) to another (a bank or merchant) to give the bearer a specified sum (or amount of goods), either from the funds of the first party held by the second party or from the credit advanced by the second party. A check is a type of bill of credit.

Meaning of Bill of credit & Bill of credit Definition