"All You Need to Know about Letters of Credit"

Nexsen Pruet member (partner) Jeff Vinzani helps explain the benefits and potential drawbacks of letters of credit in an article for "Medical Office Today."

Carrie Rossenfeld reported the item entitled "All You Need to Know about Letters of Credit." 

Letters of credit can be "commercial" or "standby" and issued by a bank to guarantee payment.  They are often used as a deposit instead of a cash deposit.

Vinzani told the publication that unless someone is "purchasing an expensive piece of medical equipment and the seller requires payment by LoC, or if you want to be sure that the seller will ship that equipment, you’re more likely to use a standby LoC."

And Vinzani added that "mistakes in presenting the letter of credit could result in the bank’s refusal to pay” so it's important to get an attorney's help.

Jeff Vinzani's law practice is concentrated in general business law with major emphases on complex real estate and finance transactions.  His finance experience includes real estate lending, asset-based lending and secured transactions.   Vinzani has extensive experience representing a wide variety of banking and financial institutions in complex transactions, as well as workouts, debt modification, and collections.