General Letter of Credit Law and Legal Definition

General letter of credit means a letter of credit addressed to all merchants, or other persons in general, requesting advance of money or credit to a third person. Hence, it may be addressed to any and all persons without naming any particular person. Endorsement of amounts advanced on letter of credit need not be indorsed on letter except in case of general letter of credit with definite limitation as to amount of credit. In such cases the letter must show advances to notify others to whom it may be presented of extent to which credit has been used.