Silent Confirmation
From Open Risk Manual
Definition
Silent Confirmation. It is the term used for a financial institution's commitment to negotiate documents under a letter of credit without recourse at a future date. A silent confirmation is not a confirmation in the true sense and does not use the word confirm. It is an equivalent form of protection for the beneficiary. The financial institution requires that the letter of credit be negotiable or payable by itself in order to be able to establish holder-in-due-course rights equivalent to those of a confirming financial institution.
