silent confirmation definition

silent confirmation

Arrangement between the beneficiary of a letter of credit (L/C) and the negotiating bank whereby the latter commits to negotiate the L/C on its due date. The L/C must be negotiable or payable by itself so that the negotiating bank (like a confirming bank) may acquire the holder-in-due-course rights. It is not a true confirmation and does not use the word 'confirmation.'

silent confirmation is in the Banking, Commerce & Finance and International Trade & Relations subjects.

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