Hi all,
I just would like to add value to my knowledge and from your experience the following :-
1) Some Banks when they issue MT700, they send with it MT740.
2) Other Banks sends MT700 first, then when docs are checked, they send MT740.
3) and less Banks uses for payment stage MT202 at the time of accepting documents at sight.
What you think the most secure and practical method?
MT700+MT740 or other method?
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Mt700 + Mt740
Hi Warlord77
i think the scenarios you have issued depend on each individual bank but would like add my comments.
If a l/c is usance, the MT740 could be issued at any time. however as MT740s do not have an expiry date, some banks are loathe to issue these as they would then require cancelling at a later stage.
If a l/c is sight, the MT740 should be issued at the same time as the l/c issuance but again if the l/c is unitilised or the reimbursement clause is only valid if the advising bank adds their confirmation the MT740 would need to be cancelled at a later stage. Unfortunately some banks do claim reimbursement on discrepant documents and refuse to refund charges.
Ultimately every bank has their own procedures to follow.
Thanks Jackie
i think the scenarios you have issued depend on each individual bank but would like add my comments.
If a l/c is usance, the MT740 could be issued at any time. however as MT740s do not have an expiry date, some banks are loathe to issue these as they would then require cancelling at a later stage.
If a l/c is sight, the MT740 should be issued at the same time as the l/c issuance but again if the l/c is unitilised or the reimbursement clause is only valid if the advising bank adds their confirmation the MT740 would need to be cancelled at a later stage. Unfortunately some banks do claim reimbursement on discrepant documents and refuse to refund charges.
Ultimately every bank has their own procedures to follow.
Thanks Jackie