ICC Digital Library Forum

Bank B being an advising bank is requested to advise and confirm an usance L/C 60 days term.

My question is when Bank B book the liability on the issuing bank, will they book up to an expiry date of the L/C or book up to an expiry date plus usance period of 60 days ?

Somebody insist to book the liability up to the expiry date of the L/C. Their argument is that when the beneficiary submits documents Bank B may not agrees to discount, thus there will be no exposure on the issuing bank after expiry date.

Your thoughts, please.

Shahed

Bank B book the liability on the issuing bank up to the L/C expiry date. Upon presentation of conform documents, that liability is replaced by an acceptance liability on the issuing bank until due date of payment.
Regards
Antoine Samaha