Document background
The Revocable LC is a specialized banking instrument used in international trade transactions where payment security is desired but with retained flexibility for the issuing bank. Under Danish law and banking regulations, this document establishes a conditional payment commitment that can be modified or cancelled without prior notice, distinguishing it from irrevocable LCs. It typically includes detailed specifications for required documentation, payment terms, and conditions for modification or cancellation. While less common than irrevocable LCs due to the lower security for beneficiaries, Revocable LCs remain relevant in specific trading relationships where flexibility is prioritized over absolute payment security. The document must comply with Danish financial regulations while following international banking standards, particularly UCP 600.
