Words and Phrases - "letter of credit"

a
91
b
44
c
86
d
57
e
43
f
32
g
20
h
15
i
77
j
2
k
3
l
32
m
60
n
29
o
41
p
82
q
3
r
78
s
96
t
48
u
16
v
11
w
23
y
2

Alcoa Canada Cie v. ARQ, 2024 QCCQ 4490

Summary Under
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Money
standby letter of credit was money

The supply agreement between Alcoa and a purchaser (Sural) provided that Sural would maintain a standby letter of credit of US$16 million to ensure payment by Sural of the amounts invoiced by Alcoa. After noting that by definition a letter of credit was "money," Bourgeois JCQ indicated (at para. 26) that a standby letter of credit becomes an ordinary letter upon presentation, i.e., a standby letter of credit is a letter of credit "in waiting" (TaxInterpretations translation).

Words and Phrases
letter of credit
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 231 - Subsection 231(1) an unrecoverable receivable was not a bad debt to the extent compensated under a standby letter of credit 405