Letter of Credit where a Confirming Bank, usually located in the Exporter's country, has guaranteed payment under the Letter of Credit assuming that all terms and conditions of the Letter of Credit have been met. With a Confirmed Letter of Credit, payment risk is assumed by the Confirmed Bank as well as the Issuing Bank, thereby providing more protection for the Exporter.
Confirming Bank Conflict between bondholders and stockholders
Letter of credit to which the advising bank has added its own, independent undertaking to honor presentation of the required documents, i.e., pay the beneficiary at sight or at maturity, as specified by the L/C. See also " silent confirmation."
Letter of credit issued by an overseas bank but also confirmed by a UK bank. Under these circumstances you'll be paid by the UK bank even if your buyer or the other bank defaults, providing the terms of the letter are met fully. (See Letter of credit).
A letter of credit, issued by a foreign bank, with validity confirmed by a U.S. bank. When confirmed, the U.S. bank undertakes responsibility for payment even if the foreign buyer or bank defaults.
A letter of credit where a bank has promised to honour the payment on behalf of the issuing bank.
A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.
A letter of credit, issued by a foreign bank, whose validity has been confirmed by a U.S. bank.
A letter of credit, issued by a foreign bank, with validity confirmed by an American bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment even if the foreign buyer or foreign bank defaults. See LETTER OF CREDIT.
A letter of credit, issued by a foreign bank, whose validity and payment have been confirmed by an American bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment by the confirming bank, even if the foreign buyer or the foreign bank defaults.
Letter of credit in which a bank (usually) in the seller's country adds its own payment undertaking to that of the Issuing bank. Protects against country risk and bank risk as well as customer credit risk.
(See Letter of Credit, Confirmed)