The issuing bank and the confirming bank (if any) undertake to honor a specified credit provided the terms of the credit are observed. The irrevocable credit may be communicated to the beneficiary by the advising bank and cannot be amended or canceled unless the issuing bank, the confirming bank and the beneficiary agree.
Constitutes a definite undertaking of the issuing bank and the confirming bank, if any, to honour the credit provided the terms of the credit are observed. It may be advised to the beneficiary without engagement by the advising bank, and cannot be amended or cancelled unless the issuing bank, the confirming bank and the beneficiary agree.