is it a appropriate, if we express in the l/c as follows:
"... available with any bank in xxx country by negotiation against the draft
draw on the issuing bank at 90 days after sight..."
l/c form
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MohammedAbdulKhaliq
- Posts: 5
- Joined: Fri Apr 05, 2019 5:16 pm
l/c form
in my openion, you must first state the story behind your question and on that basis it will be clear to the openion giver what you need and why.
personaly i wouldn't give an openion if i'm provided with a limited question to a paragraph such as that and say if it is right or wrong.
personaly i wouldn't give an openion if i'm provided with a limited question to a paragraph such as that and say if it is right or wrong.
l/c form
If you are asking it it is ok to have a credit available by negotiation with any bank in a named country and calling for a draft drawn on the Issuing Bank then the answer is yes.
This is quite common.
However, this answer is based on limited information provided
Vincent
vob@obrico.com
[edited 4/12/01 8:48:17 PM]
This is quite common.
However, this answer is based on limited information provided
Vincent
vob@obrico.com
[edited 4/12/01 8:48:17 PM]
l/c form
For negotiation, the drafts should be drawn on another party, such as the issuing bank. For discounting, the drafts should be drawn on the discounting bank as the drawee bank.
However, from my experience in dealing with trade frauds, it is not recommended to make the LC available for negotiation by any bank, unless one knows the parties and the country one is trading with well. For this kind of LC, one must draft the reimbursements clause very carefully and not to provide direct debit reimbursements.
This automatically answers the question.
However, the enquirer has not mentioned whether he has added an "engagement clause" for negotiation of drafts to give the assurance to the negotiating bank for reimbursments.
We are from www.tolee.com
[edited 12/2/01 10:02:16 PM]
However, from my experience in dealing with trade frauds, it is not recommended to make the LC available for negotiation by any bank, unless one knows the parties and the country one is trading with well. For this kind of LC, one must draft the reimbursements clause very carefully and not to provide direct debit reimbursements.
This automatically answers the question.
However, the enquirer has not mentioned whether he has added an "engagement clause" for negotiation of drafts to give the assurance to the negotiating bank for reimbursments.
We are from www.tolee.com
[edited 12/2/01 10:02:16 PM]