L/C, based on the responsibilities of the issuing bank, can be divided into:
(1) irrevocable letter of credit (Irrevocable L/C). When the letter of credit is opened, the issuing bank can not be modified and revoked unilaterally without the consent of the beneficiary and the parties concerned within the validity period. The issuing bank must fulfill the payment obligation as long as the documents provided by the beneficiary comply with the stipulations of the letter of credit.
(2) revocable letter of credit (Revocable L/C). The issuing bank does not require the beneficiary or the parties concerned to agree to revoke the letter of credit at any time. The words "revocable" should be marked in the letter of credit. But "UCP500" stipulates that the letter of credit cannot be revoked or amended as long as the beneficiary has received a negotiation, acceptance, or deferred payment under the terms of the letter of credit. It also stipulates that an irrevocable letter of credit should be deemed to be irrevocable if the credit is not specified.
The latest UCP600 stipulates that a bank can not open a revocable letter of credit.