Lesson check0 / 2 answered · 0 correct
Check 1
Who normally issues the SBLC?
Check 2
Does advice automatically mean confirmation?
Who is Who in an SBLC?
Learn applicant, issuer, beneficiary, adviser and confirmer without jargon.
Applicant
The applicant is normally the customer whose obligation the standby supports.
It asks the issuing bank to issue the SBLC.
Issuer
The issuer is normally the bank that issues the standby.
The issuer credit quality is extremely important to the beneficiary and to any financier.
Beneficiary
The beneficiary is the party in whose favour the standby is issued.
If the standby terms allow it, the beneficiary can make a demand.
Advising bank
An advising bank can pass the standby to the beneficiary and check apparent authenticity according to banking practice.
Advice does not automatically add another payment undertaking.
Confirming bank
If confirmation is actually added, the confirmer adds its own undertaking subject to the standby and applicable rules.
Requested confirmation is not the same as confirmation already being in place.
Remember thisApplicant = obligation supported. Beneficiary = party protected by the standby.
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