0
Is there any letter of credit existed as name of confirmed revocable letter of credit?
Wiki User
∙ 13y ago
Only Irrevocable Letters of Credit can be confirmed. A revocable L/C can not be confirmed by bank because it can any time be revoked or modified by bank for any reason. The revocable letter of credit is not a very commonly used instrument as it is generally used to provide guidelines only for shipments. So there exists NO CONFIRMED REVOCABLE LETTER OR CREDIT.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is close of escrow?
confirmed letter of credit
What does it means of confirmed letter of credit?
ConfirmedA confirmed letter of credit is when a second guarantee is added to the document by another bank. The advising bank, the branch or the correspondent through which the issuing bank routes the letter of credit, adds its undertaking and commitment to pay to the letter of credit. This confirmation means that the seller/beneficiary may also look to the credit worthiness of the confirming bank for payment assurance. UnconfirmedAn unconfirmed letter of credit is when the document bears the guarantee of the issuing bank alone. The advising bank merely informs the exporter of the terms and conditions of the letter of credit, without adding its obligation to pay. The exporter assumes the payment risk of the issuing bank, which is typically located in a foreign country. Best regards PMB
What are the salient features of the letter of credit that have to be observed while executing the export order?
A written commitment to pay, by a buyer's or importer'sbank (called the issuing bank) to the seller's or exporter'sbank (called the accepting bank, negotiating bank, or paying bank). A letter of credit guarantees payment of a specified sum in a specified currency, provided the seller meets precisely-defined conditions and submits the prescribed documentswithin a fixed timeframe. These documents almost alwaysinclude a clean bill of lading or air waybill, commercial invoice, and certificate of origin. To establish a letter of credit in favor of the seller or exporter (called the beneficiary) the buyer (called the applicant or account party) either pays the specified sum (plus service charges) up front to the issuingbank, or negotiates credit. Letters of credit are formal tradeinstruments and are used usually where the seller is unwilling to extend credit to the buyer. In effect, a letter of credit substitutes the creditworthiness of a bank for the creditworthiness of the buyer. Thus, the internationalbanking system acts as an intermediary between far flungexporters and importers. However, the banking systemdoes not take on any responsibility for the quality of goods, genuineness of documents, or any other provision in thecontract of sale. Since the unambiguity of the terminology used in writing a letter of credit is of vital importance, theInternational Chamber Of Commerce (ICC) has suggested specific terms (called Incoterms) that are now almost universally accepted and used. Unlike a bill of exchange, a letter of credit is a nonnegotiable instrument but may betransferable with the consent of the applicant. Although letters of credit come in numerous types, the two most basic ones are (1) Revocable-credit letter of credit and (2)Irrevocable-credit letter of credit, which comes in twoversions (a) Confirmed irrevocable letter of credit and (b) Not-confirmed irrevocable letter of credit.
How is opening letter of credit different from establishing letter of credit?
Both has same meaning, opening letter of credit establishing letter of credit once letter of credit is opened, credit is established.
All the clauses of letter of credit?
Banking organizations usually write letter of credit. The purpose of the letter of credit is so that you don't have to put down a deposit. This deposit could be for an electric company or any such place. You do need good credit to get a letter of credit.
What is close of escrow?
confirmed letter of credit
What are some types of letter of credit?
Documentary letter of credit, open letter of credit, confirmed letter of credit,unconfirmed letter of credit, revolving letter of credit, fixed letter of credit,transferable letter of credit,nontransferable letter of credit,revocable letter of credit,irrevocable letter of credit,back to back letter of credit.
What is the meaning of confirmed lc and non confirmed lc?
An irrevocable Letter of Credit can be either confirmed or unconfirmed. In a confirmed Letter of Credit, the issuing bank (representing the buyer) agrees independently to the buyer's commitments to pay the seller the agreed-up amount of money, as long as all the requirements of the Letter of Credit are fulfilled. A confirmed irrevocable Letter of Credit can become very elaborate. A second bank (often specified as a prime bank) may confirm or otherwise guarantee payment of the foreign bank that initially opened the Letter of Credit. This requirement originates from the seller and usually takes places only if the bank of the buyer is not internationally established. UNCONFIRMED L/C A letter of credit which has not been guaranteed or confirmed by any bank other than the bank that opened it. The advising bank merely informs the beneficiary of the letter of credit terms and conditions.
What is swift mt 910?
This MT massage type is used in case of Confirmed letter of Credit
What does it means of confirmed letter of credit?
ConfirmedA confirmed letter of credit is when a second guarantee is added to the document by another bank. The advising bank, the branch or the correspondent through which the issuing bank routes the letter of credit, adds its undertaking and commitment to pay to the letter of credit. This confirmation means that the seller/beneficiary may also look to the credit worthiness of the confirming bank for payment assurance. UnconfirmedAn unconfirmed letter of credit is when the document bears the guarantee of the issuing bank alone. The advising bank merely informs the exporter of the terms and conditions of the letter of credit, without adding its obligation to pay. The exporter assumes the payment risk of the issuing bank, which is typically located in a foreign country. Best regards PMB
What is the difference between irdlc and rdlc?
IRDLC and RDLC are both types of documentary letters of credit. An IRDLC (Documentary Irrevocable Letter of Credit) can not be changed or canceled by the buyer. Payment must be issued by the buyers bank. These are very common. An RDLC (Documentary Revocable Letter of Credit) can be changed or canceled by the buyer at any time without notifying the seller. These are very rarely used.
What are the salient features of the letter of credit that have to be observed while executing the export order?
A written commitment to pay, by a buyer's or importer'sbank (called the issuing bank) to the seller's or exporter'sbank (called the accepting bank, negotiating bank, or paying bank). A letter of credit guarantees payment of a specified sum in a specified currency, provided the seller meets precisely-defined conditions and submits the prescribed documentswithin a fixed timeframe. These documents almost alwaysinclude a clean bill of lading or air waybill, commercial invoice, and certificate of origin. To establish a letter of credit in favor of the seller or exporter (called the beneficiary) the buyer (called the applicant or account party) either pays the specified sum (plus service charges) up front to the issuingbank, or negotiates credit. Letters of credit are formal tradeinstruments and are used usually where the seller is unwilling to extend credit to the buyer. In effect, a letter of credit substitutes the creditworthiness of a bank for the creditworthiness of the buyer. Thus, the internationalbanking system acts as an intermediary between far flungexporters and importers. However, the banking systemdoes not take on any responsibility for the quality of goods, genuineness of documents, or any other provision in thecontract of sale. Since the unambiguity of the terminology used in writing a letter of credit is of vital importance, theInternational Chamber Of Commerce (ICC) has suggested specific terms (called Incoterms) that are now almost universally accepted and used. Unlike a bill of exchange, a letter of credit is a nonnegotiable instrument but may betransferable with the consent of the applicant. Although letters of credit come in numerous types, the two most basic ones are (1) Revocable-credit letter of credit and (2)Irrevocable-credit letter of credit, which comes in twoversions (a) Confirmed irrevocable letter of credit and (b) Not-confirmed irrevocable letter of credit.
How is opening letter of credit different from establishing letter of credit?
Both has same meaning, opening letter of credit establishing letter of credit once letter of credit is opened, credit is established.
What is a commodities letter of credit?
It is a Letter of Credit covering commodities.
All the clauses of letter of credit?
Banking organizations usually write letter of credit. The purpose of the letter of credit is so that you don't have to put down a deposit. This deposit could be for an electric company or any such place. You do need good credit to get a letter of credit.
What is RDLC one type of letter of credit?
Revolving Documentary Letter of Credit
