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Can an issuing bank include two applicants in a credit
Posted: Sun Mar 07, 2010 1:22 pm
by dulari
Can an issuing bank include two applicants in a credit ?
yes
Posted: Tue Mar 09, 2010 11:16 pm
by shahriar
yes, its possible to have more than on applicant in an LC. basically an applicant is not a party the letter of credit. its the issuing bank that gives the undertaking. in circumstances it may be even possible to have more than one issuing bank
Plz explain
Posted: Thu Mar 11, 2010 2:58 pm
by saikryshna
Can u plese give me a detailed explination .............. for ur answer
Multiple Applicants and Multiple Issuing Banks
Posted: Mon Mar 15, 2010 12:32 pm
by VASU
There can be a scenarion where there are multiple applicants for one LC. This is in case of Contract Financing where there are multiple applicants involved and venruting a project and need LC and issueing bank providing the Credit against these multiple applicants. But any point of time, there could be one main applicant. MT700 - Issuance of LC, Supports single applicant to be mentioned in the message.
Also, there can be a scenario where in there may be more than one bank participating in providing the credit.
This may be termed as LC Syndication which is a practice in some regions like Middle east.
Requst Some one to throw light on LC Syndication.