Dear All,
I have two questions as below.
We have a confirmed documentary credit is issued by the Issuing bank with the following details:
41D:Available With...By Confirming Bank by payment
78:Instrucs to Pay/Accpt/Negotg Bank ... REIMBURSEMENT INSTRUCTIONS: FOR THE VALUE OF DOCUMENTS WHICH
CONSTITUTE COMPLYING PRESENTATION, KINDLY: REIMBURSE YOURSELVES VALUE SEVEN WORKING DAYS FROM THE DATE OF DISPATCHING DOCUMENTS TO US, AND UNDER AUTHENTICATED SWIFT ADVICE TO US INDICATING VALUE DATE.
The beneficiary made a complying presentation to the confirming bank.
1 . When will the confirming bank pay the LC amount to the beneficiary? Is it after 5 banking days for examination ? Or 5 banking days plus 7 working days as per the field 78 above.
2. Assume that the beneficiary made a complying presentation directly to the issuing bank. When will the issuing bank pay to the beneficiary. ? Is it after 5 banking days for examinaton or 5 banking days plus 7 working days?
Some suggest that the answer of the first question is 5 banking days plus 7 working days but It does not make sense to me.
Because I believe that if the beneficiary make a complying presentation directly to the issuing bank, the issuing bank will pay immediately after examining the documents (5 banking days). If that the case and since the confirming bank undertaking is similar to the issuing bank, payment should be the same.
What do you think?
Thanks a lot.
Confirming Bank / Complying Presentation / Payment
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blackeneds
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Veerla
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Reimbursement
Wrong on multiple counts.
The 7 days clause 'after' the dox were couriered is wrong. It's got to be amended. The Confirming Bank shall seek Reimbursement Undertaking from the Reimbursing Bank (arranged by the Issuing Bank) if the LC is not amended to avoid loss of funds by the Conf/Nego Bank for the 7 days.
Reimbursing Banks dont entertain Value dating claims (URR 725)
Beneficiary can as well submit the dox directly to the Issuing Bank & get his money but the Issuing Bank is liable to pay the Confirmation charges (if not paid by the Beneficiary).
Any charges, interest or anything related to the LC advising, confirmation, reimbursement delays shall be borne by the Issuing Bank.
The 7 days clause 'after' the dox were couriered is wrong. It's got to be amended. The Confirming Bank shall seek Reimbursement Undertaking from the Reimbursing Bank (arranged by the Issuing Bank) if the LC is not amended to avoid loss of funds by the Conf/Nego Bank for the 7 days.
Reimbursing Banks dont entertain Value dating claims (URR 725)
Beneficiary can as well submit the dox directly to the Issuing Bank & get his money but the Issuing Bank is liable to pay the Confirmation charges (if not paid by the Beneficiary).
Any charges, interest or anything related to the LC advising, confirmation, reimbursement delays shall be borne by the Issuing Bank.
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hachem
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Payment date
Hi,
Whether the documents are presented to the confirming bank or to the issuing, both of them have a period of 5 banking days after the day of presentation to determine if a presentation is complying as per sub-article 14(b).
If the documents are complying with the terms and conditions of the credit, the confirming must send a message swift to the issuing bank indicating the value date of the payment. The issuing bank will pay the confirming bank. The maturity is calculated as following: Max of 5 banking days+7banking days.
If the docuements are complying with the terms and conditions of the credit, the issuing will pay the beneficiary at maturity date. No swift advice to be sent. The maturity is calculated as following: Max of 5 banking days+7banking days.
Reagrds
H Jallouli
Whether the documents are presented to the confirming bank or to the issuing, both of them have a period of 5 banking days after the day of presentation to determine if a presentation is complying as per sub-article 14(b).
If the documents are complying with the terms and conditions of the credit, the confirming must send a message swift to the issuing bank indicating the value date of the payment. The issuing bank will pay the confirming bank. The maturity is calculated as following: Max of 5 banking days+7banking days.
If the docuements are complying with the terms and conditions of the credit, the issuing will pay the beneficiary at maturity date. No swift advice to be sent. The maturity is calculated as following: Max of 5 banking days+7banking days.
Reagrds
H Jallouli
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Janey11284
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?
Hi,
Some questions...
Who is the confirming bank? You?
Who is the reimbursing bank? You? Are you debuting a vostro account?
If you have confirmed the credit and you find the documents credit compliment, upon despatch of document you should send an authenticated swift stating the value date 7 working day in advance. The confirming bank should then make payment to the bene irrelevant of receipt of funds from the issuing bank.
Any other suggestions?
Some questions...
Who is the confirming bank? You?
Who is the reimbursing bank? You? Are you debuting a vostro account?
If you have confirmed the credit and you find the documents credit compliment, upon despatch of document you should send an authenticated swift stating the value date 7 working day in advance. The confirming bank should then make payment to the bene irrelevant of receipt of funds from the issuing bank.
Any other suggestions?