ADVICE FOR ADVISING BANK:
The term "advice for advising bank" refers to a communication or notification sent by a bank (the "issuing bank") to another bank (the "advising bank") with regards to a letter of credit transaction. When a letter of credit is issued, the issuing bank may choose to utilize the services of an advising bank for various reasons such as to benefit from their local expertise or to ensure that the credit is properly communicated to the beneficiary. The issuing bank, therefore, provides advice to the advising bank in order to convey the details and terms of the letter of credit.
The advice for advising bank typically includes information about the parties involved (i.e., the applicant, beneficiary, and issuing bank), the specifics of the letter of credit such as the amount, expiry date, and payment terms, as well as any additional instructions or conditions that need to be communicated to the beneficiary. This advice serves as an official notification to the advising bank that they are expected to assist the beneficiary in complying with the terms of the credit.
Important details provided in the advice for advising bank may also include any amendments or changes made to the original letter of credit, ensuring that the advising bank is aware of any modifications to the original terms. The advising bank, upon receiving such advice, is responsible for promptly notifying the beneficiary and providing them with copies of the relevant documentation related to the letter of credit.
In summary, the advice for advising bank is a crucial communication from the issuing bank to the advising bank that conveys important information about a letter of credit, allowing the advising bank to assist the beneficiary in executing the transaction effectively.
