Letter of Credit - 2
17/12/2009 04:47
Types of LC:
Revocable LC: can be amended or cancelled at any moment by Issuing Bank with consent of other party.
Irrevocable LC: holds commitment by Issuing Bank to pay or reimburse the Negotiating Bank provided conditions of LC are compiled with.
Irrevocable Confirmed LC: This has been confirmed by a bank usually situated in the exporter’s country, other than issuing bank.
Transferable LC: it is available for transfer in full or part, in favour of any party other than beneficiary, by advising bank at the request of issuing bank. 2nd beneficiary can not transfer further to anyone.
Red Clause LC: enables the beneficiary to avail pre-shipment credit from nominated bank /Advising bank.