International Commercial Terms Document - O

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Ocean bill of lading: A bill of lading indicating that the exporter consigns a shipment to an international carrier for transport to a specified foreign destination. Unlike an inland bill of lading, the ocean bill of lading also serves as a collection document.

On boar bill of lading: A bill aof lading inwhich a carrier certifies that goods have been placed on board a certain vessel.

Open account: Trading method in which goods are dispatched to a buyer and paid for after they have been received.

Open account trading and collections: A bill of exchange that will be drawn on and accepted by the buyer.

Open Insurance Policy: A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.

Opening bank: Another name for the Issuing bank in a letter of credit.

Open-end Lease: A conditional sale lease in which the lessee guarantees that the lessor will realize a minimum value from the sale of the asset at the end of the lease.

Operating Lease: Any lease that is not a capital lease. These are generally used for short term leases of equipment. The lessee can acquire the use of equipment for just a fraction of the useful life of the asset. Additional services such as maintenance and insurance may be provided by the lessor.

OPIC: Overseas Private Investment Corporation. A US agency that assists US companies protect their investment against risk in a particular country besides providing other services.

Order: A form of endorsement or transfer. On a bill of exchange, 'order' or 'to order' means that the drawer directs that payment be made to another party (usually a bank).

On a bill of lading: 'order' or 'to order' transfers or assigns title to the goods to another party.

Outward collection: How the Remitting bank refers to a collection. Collection being sent overseas to collecting bank(s) for presentation to buyer.

Outward letter of credit: How the Issuing bank refers to a letter of credit.