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An At Sight LC is a fundamental trade finance instrument used when immediate payment is required in international trade transactions. This document type provides security to both buyers and sellers by having a bank guarantee payment upon presentation of compliant documents. The At Sight LC is particularly useful in transactions where the seller wants assurance of prompt payment after shipping goods and presenting required documentation. Under U.S. jurisdiction, these documents are governed by both federal and state laws, primarily through the Uniform Commercial Code Article 5, while also adhering to international banking practices under UCP 600. The document typically includes detailed specifications about the transaction, required documents, payment terms, and conditions that must be met for payment to be released.
