Who Will Make Payment In UPAS LC

[sreejithhs]

HI,

I HAD A PROBLEM WITH AN LC WITH CONDITIONS SUCH AS:

CLAUSE F42C: PAYABLE AT SIGHT FOR BENEFICIARY WITHOUT RECOURSE TO BENEFICIARY AND USUANCE 60 DAYS TO APPLICANT AT ACTUAL COST.

F46A: BENEFICIARY SHALL NEGOTIATE 90% OF THE VALUE OF THE CARGO LOADED AGAINST SUBMISSION OF FOLLOWING DOCUMENTS WITHIN 10 DAYS OF DATE OF SHIPMENT. DOCUMENTS SUCH AS PROV INVOICE, PACKING LIST, CERTIFICATE OF ORIGIN ETC....

BALANCE 10% SHALL BE NEGOTIATED AGAINST SUBMISSION OF THE FOLLOWING DOCUMENTS:
SUCH AS FINAL INVOICE,FINAL QUALITY CERTIFICATE ETC....

NOW THE PROBLEMS..
AS PER THE ABOVE CONDITIONS WE HAD SUBMITTED THE DOCUMENTS TO OUR BANK FOR 90% OF PAYMENT AT SIGHT. OUR BANK HAS SENT THE DOCUMENTS TO THE APPLICANTS BANK TO AND THEY HAVE ACCEPTED THE DOCUMENTS.
NOW THE QUESTION IS WHO HAS TO MAKE THE PAYMENT TO BENEFICIARY.... ADVISING BANK OR BENEFICIARY'S BANK. OR SHOULD IT HAS TO BE DISCOUNTED BY BENEFICIARY'S BANK AND MAKE THE PAYMENT....

AN EARLY SOLUTION TO THIS QUESTION MAY HIGHLY BE APPRECIATED...

THANKS
WITH REGARDS.....

[picant]

Hi Pal,

UPAS works differently, documents are sent to issuing bank, draft to a financing bank-may be a foreign branch of the same issuing bank. Your l/c is more near a red clause that UPAS. However the issuing bank must be clear about reimbursement terms.
The l/C, is IMHO poorly worded, please insert the full text or send it by email to me picchi.antonio@virgilio.it, naturally erasing sensitive data.
Other comments appreciated
Ciao