Confirmed Credit



Confirmed Credit :

If an irrevocable credit is opened by a bank in the buyer's country, the seller may require the credit to be confirmed by a bank in his own country as he may be unaware of the standing of the opening bank or may otherwise like to ask for additional protection of his interest. In such cases, the opening bank requests its correspondent in the seller's country to add its confirmation which in effect means that the confirming bank undertakes the liability to honour the seller's drafts drawn under the credit. It bears an unequivocal undertaking that draft conforming to the terms of the credit will be honoured notwithstanding any change in the position between the person or the bank opening the credit and the bank confirming the same. It ensures double protection to the seller since it is already irrevocable on the part of the opening bank and additionally on the part of the confirming bank in his own country. Although a confirmed letter of credit is irrevocable, an irrevocable credit is not necessarily a confirmed one.

An unconfirmed credit may be a credit not even confirmed by the opening bank and if so, it is in fact a revocable credit. It is normally, however, a credit which is irrevocable on the part of the opening bank but not confirmed by the advising bank in the seller's (beneficiary) country.



Related Links :

  • Application for Dealership
  • Appointment Letter
  • Basic Agreement Forms
  • Basics of Business Letters
  • Business Communication
  • Business Idioms & Phrases
  • Business Promotion Letter
  • Business Proposal Letters
  • Confirmation Letter
  • Eviction Letter
  • Farewell Letter
  • Forms and Pro-Formas
  • Friendly Letters
  • Going Out of Business Letters
  • Interview Letter
  • Introduction Letters
  • Marriage Invitation
  • Nomination Letter
  • Official Letters
  • Order Letter
  • Personal Letters
  • Reference Letters
  • Rejection Letter
  • Representation Letter
  • Resume Basics
  • Sample Letter
  • Students Letters
  • Tenancy Related Letters
  • Testimonial
  • Types of Business Letters
  • Writing Business Letters
  • Writing Resume



    How to Export? Index

    Confirmed Credit To HOME PAGE


  • Related Links :