What is CREDIT? Definition of CREDIT in Black's Law Dictionary - Legal dictionary - Glossary of legal terms.
The ability of a business man to borrow money, or obtain goods on time, in consequence of the favorable opinion held by the community, or by the particular lender, as to his solvency and reliability. People v. Wasservogle, 77 Cal. 173, 19 P. 270; In re Ford, D.C.Wash., 14 F.2d 848, 849; State ex rel. Globe-Democrat Pub. Co. v. Gehner, 316 Mo. 694, 294 S.W. 1017, 1018. That influence connected with certain social positions. 20 Toullier, n. 19. Time allowed to the buyer of goods by the seller, in which to make payment for them. The correlative of a debt; that is, a debt considered from the creditor's standpoint, or that which is incoming or due to one. Mountain State Motor Car Co. v. Solof, 97 W.Va. 196, 124 S.E. 824, 825. That which is due to a person, as distinguished from debit, that which is due by him. Claim or cause of action for specific sum of money. Richard v. American Union Bank, 204 N.Y.S. 719, 722, 123 Misc.Rep. 92; Thaden v. Bagan, 139 Minn. 46, 165 N.W. 864, 865; Richard v. American Union Bank, 204 N.Y. S. 719, 722, 123 Misc.Rep. 92; New York Life Ins. Co. v. Edwards, C.C.A.N.Y., 8 F.2d 851, 856; Humphreys v. County Court, 90 W.Va. 315, 110 S.E. 701, 702, 703.
A sum credited on the books of a company to person who appears to be entitled to it. Coons v. Home Life Ins. Co. of New York, 291 Ill.App. 313, 9 N.E.2d 419, 421. The credit of an individual is the trust reposed in him by those who deal with him that he is of ability to meet his engagements; and he is trusted because through the tribunals of the country he may be made to pay. The credit of a government is founded on a belief of its ability to comply with its engagements, and a confidence in its honor, that it will do that voluntarily which it cannot be compelled to do. Owen v. Branch Bank, 3 Ala. 258.
Bill of Credit. See Bill.
Letter of Credit. An open or sealed letter, from a merchant in one place, directed to another, in another place or country, requiring him, if a person therein named, or the bearer of the letter, shall have occasion to buy commodities, or to want money to any particular or unlimited amount, either to procure the same or to pass his promise, bill, or bond for it, the writer of the letter undertaking to provide him the money for the goods, or to repay him by exchange, or to give him such satisfaction as he shall require, either for himself, or the bearer of the letter. 3 Chit.Com.Law, 336. Powerine Co. v. Russel Inc., 103 Utah 441, 135 P.2d M6, 909, 910, 912.
A written instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn. Mechanics Bank v. New York & N. H. R. Co., 13 N.Y. 599; Lafargue v. Harrison, 70 Cal. 380, 9 P. 261, 59 Am.Rep. 416. A letter of credit is in the nature of a negotiable instrument, and is a letter whereby a person requests another to advance money or give credit to a third person, and promises to repay person making advancement. Second Nat. Bank of Toledo v. M. Samuel & Sons, C.C.A.N.Y., 12 F.2d 963, 966, 53 A.L.R. 49; Border Nat. Bank of Eagle Pass, Tex., v. American Nat. Bank of San Francisco, Cal., C.C.A.Tex., 282 F. 73, 77; Liggett v. Levy, 233 Mo. 590, 136 S.W.2d 299, 301, Ann.Cas.1912C, 70; General and special. A general letter of credit is one addressed to any and all persons, without naming any one in particular, while a special letter of credit is addressed to a particular individual, firm, or corporation by name. Birckhead v. Brown, 5 Hill, N.Y., 642; American Steel Co. v. Irving Nat. Bank, C.C.A.N.Y., 266 F. 41, 43. A "confirmed irrevocable letter of _credit,"" an "irrevocable letter," or a "confirmed credit" is a contract to pay on compliance with its terms, and needs no formal acknowledgment or acceptance other than is therein stated. Lamborn v. National Park Bank of New York, 240 N.Y. 520, 148 N.E. 664, 665.
Line of Credit. See Line.
Personal Credit. Personal credit is that credit which a person possesses as an individual, and which is founded on the opinion entertained of his character and business standing.
Fr. Credit in the English sense of the term, or more particularly, the security for a loan or advancement.
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That's the definition of CREDIT in Black's Law Dictionary - Legal dictionary - Glossary of legal terms. Courtesy of Cekhukum.com.
