Irrevocable Letter of Credit Law and Legal Definition

Irrevocable letter of credit means “a written commitment by a federally insured financial institution to pay all or part of a stated amount of money, until the expiration date of the letter, upon the Government's (the beneficiary) presentation of a written demand for payment. Neither the financial institution nor the offeror/contractor can revoke or condition the letter of credit.” [48 CFR 2.101; Title 48-Federal Acquisition Regulations System; Chapter 1-Federal Acquisition Regulation; Subchapter A-General; Part 2-Definitions Of Words And Terms; Subpart 2.1-Definitions]