Negotiate The Documents Before Maturity

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
dinesh2476
Posts: 727
Joined: Sat Oct 15, 2011 12:27 pm
First Name: Dinesh Kumar
Last Name: ...
Organization: Chrome
Filter: Two Plus Two =: 4
Location: PU

Negotiate The Documents Before Maturity

Post by dinesh2476 » Wed Nov 12, 2014 2:56 am

Dear Experts,

Have few question regarding negotiations:

Comments from the LC forum"

1. "If we pay the amount to the presenter on the maturity date, It does not mean that negotiation. It should be any date before the maturity date''.

How does the confirming bank/Nominated identify the payment from IB would be xxxxx(date) before the maturity date

For example. I have clean presentation with LC terms negotiation and 90 days from bill of lading date(01January2014) I know the maturity date is 01April2014.

I could negotiate the docs with value date 01april2014 as i know i would receive payment on such date. How does i negotiate the documents before maturity without knowing the payment would be effected on such date.

Dear experts please clarify this point.

Thanks & Regards
Dinesh

User avatar
nraajesh
Posts: 82
Joined: Wed Sep 21, 2011 4:05 pm
First Name: Rajesh
Last Name: Natarajan
Organization: Societe Generale
Filter: Two Plus Two =: 4
Location: Bangalore

Negotiation before Maturity

Post by nraajesh » Fri Dec 12, 2014 3:07 pm

Hello Dinesh,

In this case if you want to pay before maturity, discounting is an option.

Regards,

Rajesh

Post Reply