Define Advising Bank under Letter of credit

What is an Advising Bank under Letter of credit?

 

Advising bank is one of the party involved under LC. Advising bank, as a part of letter of credit takes responsibility to communicate with necessary parties under letter of credit and other required authorities. The advising bank is the party who sends documents under Letter of Credit to opening bank. Advising bank will be situated normally at or near the domicile of the beneficiary. The issuing bank either sends the letter of credit, or a notification that a letter of credit has been issued, with instructions to notify the beneficiary.


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