See ‘Features’ for details of the main parties to a letter of credit. Besides these parties, the following parties are also often involved.
1st advising bank: this is the bank that receives the L/C from the issuing bank and forwards it to a 2nd advising bank. The 1st advising bank may also be the bank confirming the L/C, meaning that it is also the confirming bank.
Reimbursement bank: this is the bank where the cover for the payment of the L/C can be obtained from the bank that settles the documents. This bank will often also charge a fee for this service.
Transferring bank: this is the bank that transfers the L/C.