Letters of credit were widely used in the United States during World War I, although they have been used in U.S. foreign trade for some time.  New York State has always had the most substantial and consistent jurisdiction in the United States with respect to letters of credit, due to the importance of New York banks in international trade.  The New York Bankers Commercial Credit Conference of 1920 provided the first set of voluntary L/C regulations for major banks in the United States, but these banks became the international UCP standard in 1938.  Lenders fully announce all terms of the loan in a credit agreement. The important credit terms included in the credit agreement include the annual interest rate, the application of interest on outstanding balances, all account-related fees, the duration of the loan, payment terms and possible consequences for late payments. The BGB of 1911 did not deal directly with letters of credit, which were still rare in the country at the time. The courts finally looked at the device as a hybrid of warrant (mandate) and authorization of payment (instruction).  “An agreement, regardless of name or description, by which a bank (the issuing bank) acts on request and instruction from a customer (of the applicant) or in its own name: personal credit contracts vary according to the type of credit issued to the customer. Customers can apply for credit cards, private loans, mortgages and revolving credit accounts. Each type of credit product has its own industry credit contract standards. In many cases, the terms of a credit contract for a retail credit product are made available to the borrower in his or her credit application.
Therefore, the application for credit can also be used as a credit contract. The sight credit indicates that payments would be made by the issuing bank on sight, on request or upon presentation. In the case of a loan, projects are taken out to the institution bank or the corresponding bank for a specified period. The credit indicates whether the Usance project should be drawn on the issuing bank or, in the event of confirmed credit, on the confirmation bank. The first beneficiary or intermediary has the right to change the following conditions of the accreditor: since the issuance of the stand by letter of Credit, including the importation of goods, is subject to some risk, In the absence of evidence of the transfer, it is therefore appropriate to inform the importer that the documentary credit covered by UCP 500/600 should be the preferred route for importers of goods Although the letters of credit originally existed only in the form of paper documents, they were issued regularly by telex at the end of the 19th century and by telex in the second half of the 20th century.  Starting in 1973, with the creation of SWIFT, banks began switching to electronic data exchange to control costs, and in 1983 the UCP was amended to allow the “teletransmission” of akkreditatien.  In the 21st century, most LCs have been distributed electronically, and completely “paperless” LCs have become increasingly common.  Once the goods are shipped, the recipient will present the requested documents to the designated bank.  This bank will verify the documents and, if it complies with the terms of the letter of credit, the bank issuing the obligation to comply with the terms of the letter of credit by payment to the beneficiary.