International Commercial Terms Document - R

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Recourse: The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse (i.e. if the Issuing bank subsequently does not pay).

Red clause: A letter of credit instructing an advance payment to be made to the beneficiary upon advice of the credit but before shipment of the goods.

Reimbursing bank: Bank specified as a source of funds in a letter of credit transaction. Bank is not a party to the letter of credit.

Release note: Document given by a bank to a buyer to enable buyer to claim the goods from the carrier. Used when goods are consigned to the bank as a means of retaining constructive control.

Remitter: The party making a payment.

Remitting bank: In a collection, bank who remits the documents overseas and in due course receives payment.

Residual Value: The value of an asset at the conclusion of a lease.

Restrictive endorsement: Endorsement transferring title or right to a named party. See also: blank endorsement.

Revocable letter of credit: Letter of credit which may be amended or cancelled unilaterally. Offers no security to seller and so very rare.

Revolving letter of credit: A Letter of credit designed to cover a series of similar consignments over a period of time.

Road consignment note: Transport document used for goods sent by road. This is not a document of title.

Rules of Origin: Rules used to determine in what country a good will be considered as actually made for tariff and other trade purposes.