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Confirmation Of A Non-Operative LC
Posted: Wed Mar 19, 2014 2:14 am
by picant
Hi Pals
what's about confirmation of a non operative l/c?
Is it possible?
Ciao
Confirmation of a non operative LC
Posted: Sat Mar 22, 2014 5:07 am
by Westley
I do not see any issues.
Confirmation
Posted: Sat Mar 22, 2014 10:15 pm
by abrar
I should think that in this case the confirmation can only become operative when the LC itself becomes operative
Confirmation
Posted: Wed Mar 26, 2014 7:14 pm
by Finance
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