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    Advance Payment Guarantee 

    The buyer uses an advance payment guarantee to ensure that any advance payment on the contract price made before delivery of the goods (or advance payment of the full contract price) will be reimbursed if the seller fails or partially fails to meet his or her contractual delivery obligations.

    Advising Bank 

    The bank that advises the Guarantee/LC at the request of the Issuing bank.

    Agent (Leading Bank) 

    The Agent issues the Guarantee for the full amount and backed up by counter-guarantees from the participating bank(s). If no agents have been elected in a Multi-Party Guarantee there could be a dilemma for the Guarantor to execute a demand if the Guarantee is silent regarding the responsibility of each party involved.

    Air Waybill (AWB) 

    Transport document issued for carriage by air in the form of confirmation of acceptance of goods for carriage. Not a negotiable instrument. The conditions of carriage are uniformly laid down in the Warsaw Agreement of 12.10.1929 and the subsequent additional protocols. «House air waybills» are also common. See UCP Art. 23.
    An air consignment note refers to a receipt issued by an international courier company for goods and an evidence of the contract of carriage, but it is not a document of title to the goods. Hence, the AWB is non-negotiable.

    Applicant 

    Means the party on whose request the Guarantee/LC is issued.

    Amendments 

    A Guarantee/LC can neither be amended nor cancelled without the agreement of the Issuing bank, the Confirming bank, if any, and the Beneficiary.

    Applicant/Opener 

    The applicant/opener is the buyer

    Aval 

    A Guarantee added to ensure payment in whole or in part of the amount of the Bill of Exchange/Promissory Note. This Guarantee may be given by a third person or even by a person who has signed as a party to the Bill of Exchange/Promissory Note.

    At Sight 

    Payable uopn presentation of documents. Generally at sight L/Cs contain instructions as to how the proceeds should be paid, which may involve a delay of several days.

    Back-to-back 

    Arrangements whereby a Seller holding an L/C requests his bank to issue a matching L/C in favour of his supplier

    Bill of Exchange 

    The Bill of Exchange involves three parties (the drawer, the drawee and the payee). A Bill of Exchange is a written, unconditional order by the drawer (who issues the document) to the drawee to pay a sum of money to the payee.

    Beneficiary 

    Means the party in whose favour an L/C is issued. Normally the Seller.

    Bill of lading (BOL, B/L) 

    A document issued by a carrier, e.g. a ship's master or by a company's shipping department, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified.

    Carrier 

    An organization that transports a product or service using its facilities, or those of other carriers, and offers its services to the general public.

    Bona Fide holder 

    Someone who in good faith have undertaken something.

    Certificate of origin 

    A document, required by foreign governments, declaring that goods in a particular international shipment are of a certain origin.

    Confirmation 

    Means a definite undertaking of the confirming bank, in addition to that of the Issuing bank. Confirmation could be added either upon instructions from an issuing or silently outside of the LC, being an agreement between the confirming bank and the Beneficiary.

    Commercial Risk 

    The risk of the counter party defaulting as a consequence of insolvency.

    Confirmer 

    The Bank who, upon an issuer’s request, adds to the issuer’s undertaking its own undertaking to payment under a SBLC.

    Confirming Bank 

    Bank that provides a confirmation. Usually the Advising Bank, though I though it may also be another bank.
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