meaning of advising bank

advising bank meaning in Law Dictionary

third party bank that gets records of letters of credit to simply confirm them, accept expenses, sign bills, and pay. AKA agent lender or nominated lender.

advising bank meaning in Business Dictionary

Correspondent bank (usually in the exporter's nation) of a providing lender (usually when you look at the importer's country) that obtains a letter of credit (L/C) from providing lender for authenticating it and informing ('advising') the exporter (the L/C's beneficiary) that a L/C was exposed by the importer in the exporter's favor. The advising bank generally also takes on various other roles in the deal, particularly (1) verifying the page of credit (playing the part for the 'confirming bank'), (2) accepting a bill of change by endorsing it (becoming the 'accepting lender') and/or, (3) spending the exporter on presentation of papers (getting the 'paying bank' or 'negotiating lender'). Also called adviser bank or nominated lender.