11.7.7　Revolving Letter of Credit循环信用证

A revolving letter of credit is a single letter of credit that covers multiple transactions over a long period of time.Like a standby credit,it is also used when you make regular shipments of the same commodity to the same importer.The credit amount may revolve either in time or in value within the validity of this single credit.If you can draw a fixed amount within each specific period of time(such as a month)as indicated in the credit until it expires,this credit revolves in time.Depending on whether or not any unused portions can be drawn on the subsequent periods,it could further be a cumulative or non-cumulativecredit.If the fixed amount is replenished every time just after you utilize it within the overall validity of the credit,this credit revolves in value.Revolving letters of credit also avoid the need for opening a new credit for every transaction.