Bank (also referred to as the seller’s bank or exporter’s bank), usually in the seller’s country, whose primary function is to authenticate the letter of credit and advise it to the seller.
The Advising bank MAY also take on other roles in the transaction, e.g.:
- confirm the letter of credit (confirming bank)
- accept a term bill of exchange (accepting bank)
- pay the seller upon presentation of documents (paying or negotiating bank)