Document background
The Advised Letter of Credit is a fundamental instrument in international trade finance, particularly relevant under Austrian jurisdiction where it must comply with both local banking regulations and EU financial directives. This document is typically used when an Austrian bank acts as an advising bank to authenticate and communicate a letter of credit issued by a foreign bank to a beneficiary. The document contains critical information including credit terms, payment conditions, document requirements, and validity periods. It provides security to international trade transactions by offering a bank's verification of the credit's authenticity while adhering to Austrian Banking Act (Bankwesengesetz) requirements and international banking standards such as UCP 600. The Advised Letter of Credit is particularly important in transactions where parties seek additional security in their international trade dealings while maintaining compliance with Austrian and EU banking regulations.
