We have been approached by one of our client to issue an Uncapped LC. I’m trying to get some information about this type of LC and the risk that they represent but I haven’t been successful on this research, I now that they are forbidden by law in the United States. Do you have any information or experienced regarding this LC?
[edited 5/16/2006 4:27:18 PM]
Uncapped LC
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ThierryDoucet
- Posts: 4
- Joined: Fri Apr 05, 2019 5:28 pm
Uncapped LC
Thierry,
It is unclear to me what you mean by an ‘uncapped’ Credit.
Do you mean one without a stated amount or one with a stated amount but which can vary -in accordance with a ‘formula’- without limit and without the issuing bank having any say in the matter? If the latter, you will find these are quite common in the oil trade and I suggest you speak to your colleagues in Paris (or perhaps London) who I imagine are very familiar with these soughts of Credit.
It is unclear to me what you mean by an ‘uncapped’ Credit.
Do you mean one without a stated amount or one with a stated amount but which can vary -in accordance with a ‘formula’- without limit and without the issuing bank having any say in the matter? If the latter, you will find these are quite common in the oil trade and I suggest you speak to your colleagues in Paris (or perhaps London) who I imagine are very familiar with these soughts of Credit.
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ThierryDoucet
- Posts: 4
- Joined: Fri Apr 05, 2019 5:28 pm
Uncapped LC
Hi,
As a matter of fact I'm talking about the second ones, and it’s for oil purposes, after I put the posting in DC Pro I have been in contact with my colleagues in Spain and they were able to help me in these matter. Thank you
As a matter of fact I'm talking about the second ones, and it’s for oil purposes, after I put the posting in DC Pro I have been in contact with my colleagues in Spain and they were able to help me in these matter. Thank you