About Letter of Credit -

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Author	Topic: About Letter of Credit
Sasi	posted 28 March 2005 01:17 PM Please explain me various types of Letter of Credits. I'm try to get involved in HMS Scrap buying business as an intermediary. I would like to know in details with examples the following types of letter of credits: -Revolving Letter of Credit -Fully funded Documentary letter of credits -Stand by Letter of credit Thanks for your help
Moderator	posted 28 March 2005 01:19 PM Please refer to the website of SITPRO the Trade Facilitation Agency supported by the Department of Trade and Industry of the UK government, which provides detail features of various types of documentary credits in international trade.
vasava1234	posted 21 November 2008 10:53 AM Revocability Letters of credit may be either revocable or irrevocable. A revocable letter of credit may be revoked or modified for any reason, at any time by the issuing bank without notification. A revocable letter of credit cannot be confirmed. If a correspondent bank is engaged in a transaction that involves a revocable letter of credit, it serves as the advising bank. Once the documents have been presented and meet the terms and conditions in the letter of credit, and the draft is honored, the letter of credit cannot be revoked. The revocable letter of credit is not a commonly used instrument. It is generally used to provide guidelines for shipment. If a letter of credit is revocable it would be referenced on its face. The irrevocable letter of credit may not be revoked or amended without the agreement of the issuing bank, the confirming bank, and the beneficiary. An irrevocable letter of credit from the issuing bank insures the beneficiary that if the required documents are presented and the terms and conditions are complied with, payment will be made. If a letter of credit is irrevocable it is referenced on its face.

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