What is the difference between Operative and Inoperative LC?

inoperative LC operative
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What is the difference between Operative and Inoperative LC?

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A.The difference between the 2 is that for an Inoperative LC, the beneficiary of the LC is not expected to ship until the LC is made operative. However, an operative LC is an LC that has the payment undertaken of the issuing bank to pay. The beneficiary is allowed to perform/ship on the LC.