Legal Definitions - notation credit

A notation credit is a type of letter of credit that requires anyone purchasing or paying a draft or demand for payment made under it to note the amount of the draft or demand on the letter. This type of credit is often used in commercial transactions.

For example, if a company purchases goods from a supplier using a notation credit, the supplier must note the amount of the payment on the letter of credit when they receive it. This ensures that the payment is properly recorded and accounted for.

Overall, notation credits are a useful tool for ensuring that payments are properly documented and tracked in commercial transactions.