Presentation – Parties to the Letter of Credit

Understanding duties and responsibilities of letter of credit participants.

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1. Issuing Bank

  • Issuing Bank is the bank that issues a letter of credit at the request of an applicant or its own behalf.
  • Letter of credit is issuing bank’s payment promise against a complying presentation.
  • Most of the time issuing issuing banks receive receive the conditions conditions of the letters of credit from applicants through LC Application Forms.
  • Once an issuing bank opens an LC it undertakes to honor a complying presentation of the beneficiary without recourse.
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