An irrevocable L/C obligates the issuing bank to honor all drawings presented in conformity with the terms of the L/C.

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An irrevocable L/C is a type of letter of credit that cannot be amended or cancelled without the consent of all parties involved. The issuing bank is obligated to honor all valid drawings presented by the beneficiary as long as they meet the conditions set out in the L/C. This provides assurance to the seller that they will receive payment for their goods or services, as long as they comply with the terms of the L/C.

An Irrevocable L/C Obligates the Issuing Bank to Honor All