Document background
The Confirmed Letter of Credit (LC) is a crucial document in international trade finance, particularly when additional security is required due to country risk, bank risk, or commercial considerations. This document, governed by Belgian law, adds a second bank's guarantee to the issuing bank's payment undertaking, providing enhanced security for the beneficiary. The Confirmed LC includes detailed specifications for required documents, payment terms, and conditions that must be met for payment release. It's commonly used in cross-border transactions where parties seek additional assurance, especially when dealing with new trading partners or challenging jurisdictions. The document incorporates international banking practices (UCP 600) while complying with Belgian legal requirements, making it a robust instrument for secure international trade payments.
