Tag Archives: LC

Types of Letter of Credit

Standby Letter of Credit Standby letter of credit is a guarantee and is mainly used in USA where according to local laws American Banks are not permitted to issue guarantees. Standby LC differs from a documentary letter of credit in that the latter requires “performance” while the former requires “non-performances” i.e. under a documentary letter… Read More »

Difference between Transferable LC and Back to Back LC

Transferable LC A transferable LC is designated as transferable by the LC issuing bank, under which the beneficiary (first beneficiary) may request the advising bank (the transferring bank) to make the credit available in whole or in part to one or more other Beneficiary(ies) (second beneficiary(ies).                                     Such Credits are governed by Article 48 of… Read More »