parties to the credit

(banking) At least the following three parties are involved in a documentary letter of credit transaction:
(1) Applicant (buyer/importer),
(2) Issuing bank (buyers bank), and
(3) Beneficiary (seller/exporter).
As a rule, however, the issuing bank will entrust a correspondent bank with the task of advising and authenticating the credit and, if applicable, with payment, acceptance or negotiation. The issuing bank may also request the advising bank to add its confirmation.
See letter of credit; confirmation; issuing bank; advising bank.

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