ARDLC definition
ARDLC means Auto Revolving Documentary Letter of Credit. This is rarely used, since if an ARDLC is issued auto revolving for 12 months, it would mean that the full funds for all 12 months have to be deposited and blocked by the issuing bank. So, if for example a monthly shipment is for $10 million, and is auto revolving for 12 months, then $120 million must be deposited and held as collateral by the bank. That is why always a SBLC is issued that needs only funds for one month/shipment and when the payment is transferred for this shipment, then you can always have the SBLC auto revolving every month;
Examples of ARDLC in a sentence
A copy of the posted ARDLC shall be transmitted by facsimile or scanned by email to the Seller for verification and documentation.
The ARDLC shall be revolving month-by-month for the duration of this Agreement, i.e. thirteen (13) months and one (1) day.