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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.
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∙ 13y ago
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What is the meaning of LC payment?
Letter of Credit payment
What is the meaning of unoffical?
not officially authorized or confirmed
What is a Usanse LC?
LC for 30,60,90,or 120 days is called Usanse LC
Can you discounting a lc non transferable?
Discounting is a term used for the actual drawing/negotiation that takes place under an Lc (Letter of Credit). The credit conform (accepted) documents/draft are due for deferred payment and the presentor does not want to wait for its funds till maturity date. Whether the LC is transferable or not is of no importance here. The LC itself should be 'discountable' (it is safer to have this in special instructions of the LC terms). The discounting then depends on the parties concerned, and the price for discounting (discounting rate/Libor/Airbor+spread) and the willingness of the bank that should discount. Discount can be performed with or without recourse.
What is the meaning of Non Micr cheques?
Defination for NON-MICR CHEQUES
Transferable and nontransferable LC?
what is the difference between transferrable and non transferable LC?
What is the meaning of lc?
Letter of Credit payment
What is the difference between restricted LC and confirmed LC?
A confirmed letter of credit is one where the exporter's bank asks for additional guarantee from another bank of its choice that if the buyer's bank is unable to honour it's obligations then the confirming bank will make the payment on the behalf of the buyer's bank. Here, the confirming bank may be in the same country as the exporter or a well reputed international bank.A restricted letter of credit is one in which the negotiation can only be done by the bank which is chosen by the bank issuing the LC. Authorization from the issuing bank to pay the beneficiary is restricted to a specific nominated bank. Meaning is that negotiating bank is only the bank which is nominated and no other bank is authorized to do the valuation of the LC other than the nominated bank. Thus, whereas the confirmed LC is one which requires authentication of payment of negotiated value(value arrived at by the negotiating bank) by the confirming bank( the respective trade documents along with the LC will pass from negotiating bank to confirming bank so that it can take note of the quantum of guarantee), the restricted LC only requires the valuation to be done by a specifically nominated negotiating bank. Here, in case of restricted LC, there is no guarantee involved from another bank as such to the exporter's bank that payment will be made. That guarantee can be there only when the LC is confirmed.Also, restricted LC is mainly focused on valuation of the LC, whereas confirmed LC is focused on additional payment guarantee from a bank of repute.I guess that should be the difference
What is the meaning of LC payment?
Letter of Credit payment
What is the meaning of to be confirmed?
To be confirmed means to be accepted. Something is confirmed when it is accepted.
What is the meaning of LC in accounting?
LC Means letter of Credit. It is a negotiable instrument to make payment through bankers of both parties, i.e. Payer & Payee
What is the meaning of LC XC NI KA on the criss angel's fingers?
Jesus Christ, Conqueror"
What is the meaning of unoffical?
not officially authorized or confirmed
What does LC stand for in LC connector?
LC stands for Lucent Connectors
What is a Usanse LC?
LC for 30,60,90,or 120 days is called Usanse LC
What is a LC opening?
what is lc opening?
What does LC mean?
lc = learning centre
