1. What is the responsibility of the confirming bank under the letter of credit?

The payment obligations of the confirming bank of the letter of credit are as follows: as long as the prescribed documents are submitted to the confirming bank, or to any other designated bank, and constitute a conforming document, the confirming bank must:

1.Commitment, if the letter of credit is one of the following:

1) The letter of credit stipulates that the confirmation bank shall make payment at sight, deferred payment or acceptance;

2) The letter of credit stipulates that the payment shall be deferred by another designated bank, but the payment has not been made;

3) The letter of credit stipulates that the payment shall be deferred by another designated bank, but it has not promised to defer payment, or has promised to defer payment but has not paid on the due date;

4) The letter of credit is accepted by another designated bank.

However, it did not accept the bill of exchange for which it was the payer, or failed to pay the bill of exchange on the due date even though it had accepted;

5) The letter of credit stipulates that it will be negotiated by another designated bank, but it has not negotiated.

2.No recourse.

Negotiated on the ground, if the letter of credit stipulates that the confirming bank will negotiate the payment. The confirming bank irrevocably assumes the obligation to undertake or negotiate from the time of confirmation of the letter of credit. After the other designated banks have accepted or negotiated the documents and transferred the documents to the confirming bank, the confirming bank shall assume the responsibility of repaying the designated bank.

Payment of the corresponding amount under an acceptance or deferred payment letter of credit shall be made on the due date, regardless of whether the designated bank has prepaid or purchased the documents before the due date. The confirming bank's liability to repay the designated bank is independent of the confirming bank's liability to the beneficiary. If the issuing bank authorizes or requires a judgment to confirm the L/C and it is not prepared to do so, it must notify the issuing bank without delay and may notify the L/C without confirmation.

Disgusting. Further information: The confirming bank refers to a bank in the exporting country or a third place that, at the request of the issuing bank, adds a clause to the letter of credit, indicating that the bank, like the issuing bank, has the responsibility for payment and acceptance of the bill of exchange and documents that meet the provisions of the letter of credit prompted by the beneficiary. For political reasons, or because the issuing bank is small and not highly creditworthy, the amount of the letter of credit exceeds the resources of the issuing bank, or the economic situation of the country where the issuing bank is located is not good, the seller may request the buyer to ask the issuing bank to entrust another bank familiar with the beneficiary to confirm the payment.

In addition, in order to make the letter of credit easy to be accepted by the seller, the buyer also took the initiative to issue a confirmed letter of credit.

Confirmation letter of credit is the issuing bank in the country where the economic turmoil, the issuing bank is in danger of bankruptcy 2The issuing bank itself has poor credit standing or poor strength.

1. The air transport time is short, the goods arrive at the airport quickly, and the consignee does not need the documents transferred by the bank, so he can go through the import and delivery procedures at the airport with Zheng Qing's own consignee identity.

2. After the goods are mentioned, the consignee can find a reason to refuse to pay the documents transferred by the bank, and the payment is extremely risky.

Summary: This air transport method will only be used when the domestic consignor fully trusts the foreign consignee, and if the domestic and foreign consignees are only in general cooperation, they should be used with caution.

Confirmed letter of credit refers to the letter of credit issued by the issuing bank that is confirmed by another bank to guarantee the payment of the bill of exchange issued by the beneficiary, which is called the confirmed letter of credit. In the practice of international trade rubber tie-up, if the following situations occur, the use of confirmed letters of credit can be considered.

1.The importer or exporter is located in a remote geographical location, and the laws and relevant regulations of the importer or exporter's location are special, coupled with different business practices and other reasons.

2.If the exporter is unable to issue a letter of credit in accordance with the bank confirmed or designated by the exporter; or the issuing bank has no dealings with any bank where the exporter is located; or political or economic instability in the place where the issuing bank is located; or due to the large amount of the Kaikong contract, which exceeds the payment capacity of the issuing bank's general business, etc.

The payment liability of the confirming bank for the confirmation messenger rollover certificate is ()aThe first mausoleum is agitated.

b.The second sex of the ruler socks.

c.The third sex.

d.The fourth sex.

Correct Answer: a

Once the confirming bank agrees to guarantee the redemption of the yuan, its payment responsibility is:

a.Fulfillment of payment obligations when the importer (issuing applicant) fails to fulfill the payment obligation.

b.Fulfill the payment obligation when the issuing bank does not fulfill the payment obligation.

c.Assume the payment obligation of a primary nature.

d.It is free to decide whether or not to assume the first payment liability.

Correct Answer: Assume the payment obligation of the first nature.

There are two types: confirmed and unconfirmed. Confirmed credit refers to the letter of credit issued by another bank to guarantee the payment of documents that meet the terms of the letter of credit and guarantee to bear the payment. Therefore, a confirmed letter of credit has a double bank guarantee.

The "irrevocable" of the letter of credit refers to the issuing bank's payment obligation to the letter of credit. "Confirmation" means that a bank other than the issuing bank guarantees to bear the payment responsibility for the L/C. An irrevocable confirmation letter of credit means that the letter of credit not only has an irrevocable payment guarantee from the issuing bank, but also has a payment guarantee from the confirming bank.

A confirmed letter of credit (confirmed credit) refers to a letter of credit (LCI) that is made by another bank, i.e. the confirming bank, and its main points are:

Clause. 1. The object of confirmation must be an irrevocable letter of credit.

Clause. 2. The bank that guarantees the irrevocable L/C is called the confirming bank.

Clause. 3. The additional guarantee of the L/C issued by the issuing bank is generally made at the request of the beneficiary; Therefore, it is necessary to increase the insurance because the beneficiary does not know enough about the creditworthiness of the issuing bank, or does not trust it enough. Some issuing banks are worried that the L/C they have opened will not be accepted by the beneficiary and take the initiative to request additional insurance.

Clause. 4. Once the L/C is confirmed, the beneficiary obtains a double payment guarantee from the issuing bank and the confirming bank, making the collection of foreign exchange more secure; For the confirmed L/C, the confirming bank first bears the payment liability, so the confirming bank is the "first drawee" here, that is, as long as the beneficiary provides the documents that meet the requirements of the L/C, the confirming bank must pay, accept or negotiate.

Clause. 5. Where a confirmation letter of credit is used, the words "irrevocable" and the words of the confirming bank shall be indicated on the certificate.

When the issuing bank has good credit and the transaction amount is not large, the unconfirmed letter of credit is generally used. Chinese banks do not issue letters of credit that require confirmation by another bank, so Chinese importers usually do not accept the requirements for opening confirmation letters of credit.

Supplement: Confirmation of L/C is the issuance of the letter of credit authorizes a designated bank to issue a confirmation of the L/C, and if the designated bank decides to add guarantee to the L/C according to the instructions, it will assume the first stupid payment liability similar to that of the issuing bank. The confirming bank must accept the payment after receiving the corresponding side-by-side submission, and its payment is a termination of the act, and there is no recourse to the beneficiary.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

a.Only when the issuing bank is unable to make the payment, Zhila assumes the responsibility of guaranteeing the payment.

b.Like the issuing bank, it bears the primary payment liability.

c.It is necessary to discuss with the issuing bank to determine the respective responsibilities of both parties.

d.Only if the buyer is unable to pay does it assume the responsibility to guarantee the payment of the default.

Correct answer: Like the issuing bank, it bears the responsibility of primary payment.

Letter of credit refers to a written voucher that guarantees the responsibility of paying the purchase price, which is usually issued by the bank to the seller at the request of the buyer, and is mainly used for relevant aspects of international **. According to the provisions of the Supreme People's Court of the People's Republic of China, when a people's court hears a case of a dispute over the use of evidence, if the parties agree to apply relevant international practices or other provisions, follow the agreement.