Letter of Credit is simply a responsibility Takeover payment by another party (in this case taken over by the Bank) at the request of the secured party (Applicant / Buyer / Customer Bank) to make payments to the insured party (Beneficiary / Seller) by the terms and conditions set forth and agreed upon.

As BG, LC is also a non-fund facilities, which the Bank in this case acting as a representative of the buyer - using Wakalah bil Ujrah contract - for the processing of documents, while the settlement of payment transactions to be able to use its own funds and use the Customer's facility with the Bank's financing of such contract which has been described previously (Murabaha receivables, receivables Istishna, Mudaraba or Musharaka).