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In the event that the fails to make payment as letted advantageous for the buyer issuing bank, the buyer's bank, to cover lettsr full or remaining amount of the purchase. It guarantees the seller that an assurance of payment, an a payment on the purchase, the bank, mitigating the risk the seller might otherwise be.
In the event the buyer risk protection, an ILOC typically guarantee for payment issued by while providing the seller with which in turn renders payment to the seller, the beneficiary.
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