Reimbursing bank

The bank named in a letter of credit from which the paying, accepting or negotiating bank may request cover after receipt of the documents in compliance with the letter of credit. The reimbursement bank is often but not always, the…

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Reinsurance

Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit the total loss the original insurer would experience in case of disaster. By spreading risk, an individual insurance company can take on clients whose…

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Remittance

Funds forwarded from one person to another as payment for bought items or services.

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Remittance following collection

In instances when a shipper has performed services incident to the transportation of goods, a carrier will collect payment for these services from the receiver and remit such payments to the shipper. Carriers charge nominal fees for this service.

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Remitter

In a documentary collection, an alternative name given to the seller who forwards documents to the buyer through banks. See documentary collection.

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