The document defines key terms related to letters of credit (L/C), including the applicant, beneficiary, issuing bank, advising bank, nominated bank, and complying presentation. It also outlines the step-by-step process of an L/C transaction, from the buyer applying for an L/C to the seller presenting documents for payment. Specifically, the buyer's bank issues the L/C, which is sent to the seller's bank; the seller then ships goods and submits complying documents for payment; if documents are in order, the seller is paid and documents are forwarded to the buyer. L/Cs guarantee payment from the buyer's bank in exchange for specified documents from the seller.