Letter Of Conditional Reimbursement

Summary of Letter Of Conditional Reimbursement

A commitment in writing by the U.S. Department of Agriculture to a nation qualified to receive U.S. agricultural aid under P.L. 480, but with which a formal aid agreement has not been signed. The letter guarantees that the U.S. government will reimburse the importer for payments made, in its local currency, to American sellers, once the actual agreement is in place. The letter customarily limits the guarantee to the percentage of the purchase price specified in the financing agreement.

(Main Author: William J. Miller)