Document background
A Confirmed LC (Letter of Credit) is essential in international trade transactions where enhanced payment security is required. This document type is particularly relevant when trading partners seek additional assurance beyond a standard LC, especially when dealing with unfamiliar jurisdictions or counterparties. Under Danish law, the Confirmed LC adds a second bank's independent payment obligation to that of the issuing bank, providing the beneficiary with two separate payment undertakings. The document must comply with Danish financial regulations, EU directives, and international banking standards such as UCP 600. It typically includes detailed specifications about the trade transaction, required documents, payment terms, and the obligations of all involved parties. This instrument is commonly used in high-value transactions or when trading with countries where additional banking security is desired.
