Confirmed Letter of Credit

A letter of credit which a bank other than the bank that opened it agrees to honor as though they had themselves issued it. This additional confirmation is in addition to the obligation of the bank which issued the letter of credit. Bloomberg Financial Dictionary

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confirmed letter of credit confirmed letter of credit letter of credit

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confirmed letter of credit UK US noun [C] (plural confirmed letters of credit)
BANKING, COMMERCE a type of letter of credit that a bank promises to pay even if the bank that gave the original letter of credit does not pay it: »

In the case of a confirmed letter of credit, a second guarantee of payment is added to the first.


Financial and business terms. 2012.

Look at other dictionaries:

  • Confirmed Letter Of Credit — A second guarantee, in addition to a letter of credit, that commits to payment of the letter of credit. A confirmed letter of credit is typically used when the issuing bank of the letter of credit may have questionable creditworthiness and the… …   Investment dictionary

  • confirmed letter of credit — See letter of credit …   Big dictionary of business and management

  • confirmed letter of credit — see letter of credit …   Useful english dictionary

  • letter of credit — An obligation issued by a bank on behalf of a bank customer to a third party. There are many different kinds of letters of credit. The two most common are commercial letters and standby letters. A commercial or trade letter of credit is a bank… …   Financial and business terms

  • letter of credit — documentary credit A letter from one banker to another authorizing the payment of a specified sum to the person named in the letter on certain specified conditions (see letter of indication). Commercially, letters of credit are widely used in the …   Big dictionary of business and management

  • letter of credit — documentary credit A letter from one banker to another authorizing the payment of a specified sum to the person named in the letter on certain specified conditions. Commercially, letters of credit are widely used in the international import and… …   Accounting dictionary

  • letter of credit — letter of credit: a document issued to a beneficiary at the request of the issuer s customer in which the issuer (as a bank) promises to honor a demand for payment by the beneficiary in order to satisfy or secure the customer s debt compare… …   Law dictionary

  • confirmed irrevocable letter of credit — See: letter of credit …   Accounting dictionary

  • letter of credit — An engagement by a bank or other person made at the request of a customer that the issuer will honor drafts or other demands for payment upon compliance with the conditions specified in the credit. A credit may be either revocable or irrevocable …   Black's law dictionary

  • irrevocable letter of credit — A confirmed irrevocable letter of credit, irrevocable letter, or a confirmed credit is a contract to pay on compliance with its terms, and needs no formal acknowledgment or acceptance other than is therein stated. See also letter of credit …   Black's law dictionary

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