Presentation – Parties to the Letter of Credit

Understanding duties and responsibilities of letter of credit participants.

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2. Applicant

  • Applicant is the buyer of the underlying transaction.
  • Applicant is the party on whose behalf the letter of credit is issued.
  • Applicants complete Letter of Credit Application Forms to pass the details details of the letter of credit to issuing issuing banks via online forms or hard copy.
  • Once letter of credit is issued applicant removes from the lc equation in terms of payment obligation. Issuing banks must honor complying presentations independently and irrevocably.