How Does it Work?

1. UniCredit Bulbank, acting as an Advising bank, receives a Letter of Credit and advises the Beneficiary of the receipt of an authentic Documentary Letter of Credit in its favor.

2. The beneficiary ships the goods subject to the Letter of Credit and presents the documents to UniCredit Bulbank. UCB checks and forwards the documents to the Issuing bank.  Upon receipt of documents, the Issuing Bank examines them for compliance with LC conditions and if they comply, effects payment towards UCB or undertakes to effect payment at maturity.

3. If the Letter of Credit is issued with instructions to be confirmed and upon Beneficiary’s request, UCB may add its confirmation and so undertaking an irrevocable obligation towards the Beneficiary to effect payment upon Beneficiary’s complying presentation at its counters. Whenever UCB confirms a Letter of Credit its undertaking to the customer – the Beneficiary under the LC is separate from and in addition to the Issuing bank’s undertaking.