Document background
The Advised Letter of Credit is a fundamental instrument in international trade finance, used when parties seek secure payment methods for cross-border transactions. This document becomes necessary when a bank in Denmark acts as an advising bank, verifying the authenticity of a letter of credit issued by a foreign bank and communicating it to the beneficiary. The Advised Letter of Credit includes crucial information such as credit amount, documentary requirements, shipment terms, and presentation deadlines, all while ensuring compliance with Danish banking regulations and international standards such as UCP 600. It is particularly important in situations where the beneficiary requires local bank verification of the credit's authenticity and where the advising bank may also act as the nominated bank for document examination and payment. The document's structure and content are designed to meet both Danish legal requirements and international banking practices, providing clarity and security to all parties involved in the transaction.
