Bank-to-Bank Procedures check0 / 1 answered · 0 correct
Check 1
Is a Word file titled “MT700 test copy” automatically an issued LC?
Draft Wording, Specimen, “Test Copy” and Pre-Advice
Separate proposal documents from operative bank messages.
Draft wording
Before issuance, parties often circulate proposed LC/SBLC/guarantee wording for review. A Word or PDF draft is not itself the operative bank undertaking.
Reviewed: September 2026Standards and bank policy can change.How MyGreed classifies proceduresOfficial-source directory
Specimen / test copy
“Specimen” and “test copy” are informal market expressions that can mean proposed wording or a sample. They are not universal ICC-defined stages. Ask exactly what the sender means.
Formal documentary-credit pre-advice
SWIFT Category 7 includes MT705, Pre-Advice of a Documentary Credit. A formal pre-advice has its own purpose and should not be confused with an emailed draft.
Operative issuance
The operative LC/SBLC/guarantee is created and communicated according to the issuing bank’s approved process and the undertaking terms. Authentication through the receiving bank channel matters.
Source / standards noteProcedure terminology can be market-specific. MyGreed distinguishes formal rules/message functions from bank policy and negotiated transaction steps.
Remember thisDraft wording helps parties agree terms; it is not proof that the bank has issued the instrument.
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