Document background
The At Sight Letter of Credit is a fundamental trade finance instrument used in international commerce when immediate payment upon document presentation is required. It serves as a secure payment method where the issuing bank commits to pay the beneficiary as soon as compliant documents are presented, providing certainty for cross-border transactions. Under Canadian jurisdiction, these documents must comply with both the UCP 600 international rules and Canadian banking regulations, including the Bank Act and relevant financial services legislation. The At Sight LC is particularly valuable in situations where parties may not have established trading relationships or when local regulations require formal bank guarantees for international trade. It includes detailed specifications about the transaction, required documentation, payment terms, and compliance requirements, ensuring all parties have clear understanding of their obligations and rights.
