"Reimbursement undertaking" means a separate irrevocable undertaking of the reimbursing bank, issued upon the authorization or request of the issuing bank, to the claiming bank named in the reimbursement authorization, to honor that bank's reimbursement claim, provided the terms and conditions of the reimbursement undertaking have been complied with.
If the reimbursing bank is authorized or requested by the issuing bank to issue its reimbursement undertaking to the claiming bank but is not prepared to do so, it must so inform the issuing bank without delay.
The 'Confirmed by us' field shows the current status of the confirmation according to which the internal booking entries are made. This field can be used to stipulate whether the L/C is confirmed or not. Silent confirmation may also be selected, in which case the L/C is also confirmed but this is not communicated externally. The confirmed amount is entered as an exposure when an L/C is opened and may be subject to change. When the 'Confirmed by us' field is selected as 'Yes' / 'Silent', then the Reimbursement Advice sent to the Claiming Bank contains the Reimbursement Undertaking information.