A KTT credit-enhancement instrument is a banking instrument or authenticated bank-to-bank communication transmitted for a credit-support, collateral, guarantee, financing, or other defined banking purpose.
It is generally connected to an underlying commercial, contractual, or financial arrangement between the remitter and the beneficiary.
The receipt of a credit-enhancement instrument should not be confused with receipt of a cash transfer. Prominence Bank’s existing KTT policy already distinguishes KTT communications involving financial instruments from instructions involving actual movement and settlement of funds.
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