Also known as: L/C · letter of credit
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An abbreviation required in the name of a limited liability company. The name must include the phrase limited liability company or limited company or one of the abbreviations L.L.C., LLC, L.C., or LC.
An abbreviation for letter of credit, a financial instrument issued by a bank or other person that provides for payment upon presentation of specified documents.
Each sense below has its own examples, sources, and questions.
An abbreviation required in the name of a limited liability company. The name must include the phrase limited liability company or limited company or one of the abbreviations L.L.C., LLC, L.C., or LC.
Select any source to read its text and confirm it supports the definition.
An abbreviation for letter of credit, a financial instrument issued by a bank or other person that provides for payment upon presentation of specified documents.
Select any source to read its text and confirm it supports the definition.
Lakewood Manufacturing submits articles of organization listing its name simply as Lakewood Manufacturing. The secretary of state returns the filing because the name lacks any required indicator. The organizers amend the name to Lakewood Manufacturing LLC and resubmit successfully.
The name must contain the phrase limited liability company or limited company or one of the abbreviations L.L.C., LLC, L.C., or LC. Limited may be shortened to Ltd. and company to Co.
Supporting sources
No. LC is also the required abbreviation for limited liability company in entity names. Context determines which meaning applies.
Supporting sources
No. The uniform act mandates inclusion of one of the listed phrases or abbreviations regardless of distinguishability from other records.
Supporting sources
Linden Logistics presents documents under an LC issued by a confirming bank. The documents include an air waybill instead of an ocean bill of lading. The bank dishonors because trade usage requires ocean bills for the LC term, and a court later upholds the dishonor after considering the usage evidence.
Legacy Motors obtains an LC from the Central Bank of Nigeria to secure payment for equipment. When the bank refuses to honor a compliant draw, Legacy sues in U.S. court. The court determines that the commercial activity exception applies and allows the suit to proceed.
Liberty Trust issues an LC for a cargo shipment arranged by Lars Lindstrom. The LC incorporates a charter party containing an arbitration clause. When cargo damage occurs, the court enforces arbitration because the clause is valid under the federal arbitration act even though the LC itself is silent on disputes.
Nexxus Products issues an LC to secure payments from a distributor. Sally Beauty acquires the distributor and attempts to draw under the LC. Nexxus refuses consent to the assignment, and the court holds that the personal nature of the distribution relationship prevents automatic transfer of rights under the LC.
…v. Swiss Credit Bank , 597 F.2d 146 (9th Cir. 1979), in which this court considered the meaning of an express term in a letter of credit requiring presentment of a “full set clean on board bills of lading.” When the components for the electronic calculators were sent by air, the bank protested that ocean shipment was…