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Evergreen L/C

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Fri, 03/19/2010 - 23:08
Vivian
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Can anybody tell me what 'evergreen l/c' stands for?

regards

vivian

‹ Insurance and prominent 110% Revolving LC ›
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Sun, 08/29/2010 - 23:57
#1
leo12
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hi

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Sat, 03/20/2010 - 02:13
#2
smmujeeb
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Evergreen L/C

LC which never expired .....

Regards!!!!

Mujeeb :-) 

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Mon, 03/22/2010 - 12:05
#3
JavierDC
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Evergreen L/C

It is a letter of credit (usually for Standbys) that is available for more than a year and that is anually renewable. It has a clause that shows the automatically extention for further period (one year) without any amendment needed unless any of the L/C parts request to cancel it before a period of time mentioned in the clause.

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Tue, 03/23/2010 - 09:27
#4
manimury
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Evergreen L/C

Any prudent bank would like to make sure of two things in an LC or Standy LC - Limitation for liability in amount and limitation in time i.e., the document should be clear as to the total maximum amount the bank has committed to pay and the date of expiry of the LC/Standby LC. An LC which has a clause automatically extending the period is a perpetual committment to be avoided at all costs. In India the Customs Department used to seek such guarantees but thankfully seem to have climbed down since then.

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