Buyer And Seller In Same Branch In LC Negotiation

sanjivkumar · Post by **sanjivkumar** » Fri Apr 11, 2014 12:25 am

A ltd and B ltd, both the companies are banking with my branch. Both the companies operating at the same centre. A ltd requests us to open a usance LC in favour of B ltd. (I) is it correct to open a LC in favour of a company banking with my branch? B Ltd submits documents to our branch for negotiation/ discounting. is it correct to negotiate/ discount the bill as we are issuing banker?
Regards
Sanjiv

picant · Post by **picant** » Sat Apr 12, 2014 12:40 am

Hi Friends,

pay attention to avoid discussion with two customers.....
other comments appreciated
ciao

realkisser · Post by **realkisser** » Sat Apr 12, 2014 12:25 pm

You can do that.
but be careful about the deal. because may be they(A & B) are accommodating the bill.so try to confirm about it.
then u can open a L/C and discount it.

sanjivkumar · Post by **sanjivkumar** » Mon Apr 14, 2014 12:54 am

realkisser wrote:You can do that.
but be careful about the deal. because may be they(A & B) are accommodating the bill.so try to confirm about it.
then u can open a L/C and discount it.

how is it possible to check whether it is accommodating lc or not. as they submit all documents.