Due on presentation意思

"Due on presentation" is a term commonly used in finance and banking, particularly in the context of letters of credit (LCs) in international trade. It refers to the payment obligation of the issuing bank, which is required to pay the beneficiary (seller) upon the presentation of certain documents as specified in the LC.

In the context of a letter of credit, the term "due on presentation" means that the bank is obligated to make the payment at the time the beneficiary presents the required documents, as long as the documents comply with the terms and conditions of the LC. The bank has no right to refuse payment if the documents are in order, regardless of any issues with the underlying goods or services.

The concept of "due on presentation" is fundamental to the documentary credit system, which operates on the principle of "strict compliance." This means that if the documents presented match the terms of the LC exactly, the bank must pay, even if there are discrepancies between the documents and the actual shipment of goods or provision of services.

It's important to note that the term "due on presentation" is not typically used in the context of academic presentations or PowerPoint slides. In that context, "due" would simply mean that the presentation is expected or required to be completed by a certain date or time.