silent confirmation

(banking/letters of credit) In addition to the commitment of the issuing bank of a letter of credit, the advising bank can, by silent confirmation, enter into its own, independent commitment to pay or accept. In contrast to the confirmed letter of credit, in this case there is no confirmation instruction given by the issuing bank. Silent confirmations are thus purely agreements between the beneficiary and the “silently confirming” bank. In order to enforce its claim, the “silently confirming” bank requires the assignment of all the rights of the beneficiary under the letter of credit. See letter of credit.

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