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Letters of Credit Collection Procedures
8. In our example, because it involves 90 days' credit, it is sent for acceptance - and is known as an acceptance credit.

9. In the meantime, the goods are being shipped from the exporter's country.

10. The foreign bank, also having carefully checked that the documents are in order, pays the exporter's bank or, as in our example, accepts the 90-day draft.

11. The foreign bank then releases the documents to the foreign importer which is required to sign a receipt acknowledging not only that the importer has received them but also that ownership of the goods remains with the bank until payment for the goods has been made to the bank.

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