• A letter of credit is a financial device developed by merchants as a convenient and relatively safe mode of dealing with sales of goods to satisfy the seemingly irreconcilable interests of a seller, who refuses to part with his goods before he is paid, and a buyer, who wants to have control of the goods before paying.

• Through a letter of credit, a buyer obtains the credit of a third party, usually a bank, to provide assurance of payment.

• In a transaction involving a letter of cr edit, there are usually three transactions and three parties.

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• A trust receipt is considered a security transaction intended to aid in financing importers and retail dealers who do not have sufficient funds.

• A trust receipt may be denominated in the Philippine currency or any foreign currency acceptable and eligible as part of international reserves of the Philippines.

• In the case of trust receipts denominated in foreign currency, payment shall be made in its equivalent in Philippine currency computed at the prevailing exchange rate.

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• Trust receipt transaction is any transaction by and between an entruster and an entrustee, whereby the entruster who owns or holds absolute title or security interest over certain specified goods, documents or instruments, releases the same to the possession of the entrustee upon the latter’s execution and delivery to the entruster of a signed document called a “trust receipt.”

• Failure of the entrustee to turn over the proceeds of the sale of the goods, covered by the trust receipt to the entruster or to return said goods if they were not disposed of in accordance with the terms of the trust receipt shall be punishable as estafa under the Revised Penal Code.

• If the violation or offense is committed by a corporation, partnership, association or other juridical entities, the penalty shall be imposed upon the directors, officers, employees or other officials or persons therein responsible for the offense, without prejudice to the civil liabilities arising from the criminal offense.
  

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• The Corporate Secretary shall ensure that the attendees are able to hear and see the other participants clearly.

• The Corporate Secretary shall ensure to safe-keep and perpetuate in updated data storage equipment.

• The Corporate Secretary shall require those who attended the meeting through remote communication, to sign the minutes of the meeting whenever the act of signing is practicable.

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