answersLogoWhite

0

What is confirmed LC?

Updated: 12/13/2022
User Avatar

Wiki User

7y ago

Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What is confirmed LC?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

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 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


Difference between Export LC and import lc?

An import LC is one made with reference to the buyer but with an export LC, the LC is changed to that with reference to the Issuing bank. This gives a stronger guarantee of payment to the seller.


What exactly means by LC?

LC is Letter of credit


WHEN IS LC REQUIRED?

What do you mean by the term LC and when it is used


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.


When was LC Perú created?

LC Perú was created in 1993.


When was Geely LC created?

Geely LC was created in 2009.


What does LC mean on diamonds?

LC is not a common designation for a diamond.