Confirmation Of A Non-Operative LC

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picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Confirmation Of A Non-Operative LC

Post by picant » Wed Mar 19, 2014 2:14 am

Hi Pals

what's about confirmation of a non operative l/c?
Is it possible?
Ciao

Westley
Posts: 23
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First Name: Westley
Last Name: Lobo
Organization: Royal Bank of Canada
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Location: Canada

Confirmation of a non operative LC

Post by Westley » Sat Mar 22, 2014 5:07 am

I do not see any issues.

abrar
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Confirmation

Post by abrar » Sat Mar 22, 2014 10:15 pm

I should think that in this case the confirmation can only become operative when the LC itself becomes operative

Finance
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Last Name: Finance
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Confirmation

Post by Finance » Wed Mar 26, 2014 7:14 pm

Hi,

IMHO - there should be no problem.

When a bank adds confirmation - the confirming bank undertakes that if a compliant presentation is made under a letter of credit then the confirming bank is liable to make payment under that LC as if they were the issuing bank.

If a confirming bank adds their confirmation to a non operative lc, the above definition would still hold.

Finance

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