Hi , expert, does anybody see a L/C issued on behalf of more than one applicants?
regards
vivian
more than one applicant?
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vivian
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- First Name: vivian
- Last Name: zhao
- Organization: banking
- Filter: Two Plus Two =: 4
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mia vervacke
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- First Name: Mia
- Last Name: Vervacke
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more than one applicant?
An lc having more than one applicant is not a normal lc practice, it should be discouraged due to complexity.
on the creditline of the mother firm (only one creditline can be used).
Additional Conditions:
+ this stand-by l/c will guarantee the payments of invoices to be paid by following applicants:
1) Company A
2) Company B
3) Company C
+ multiple and partial drawings on the three applicants are permitted up to an aggregate amount of (LC AMOUNT)
+ in case of simultaneous drawings, these will be handled on a first come first served basis.
+ each payment by our bank of a drawing will automatically and immediately reduce the amount of this SBLC proportionally, without
any need for information by our bank.
+ the total amount of all individual draxwings by the beneficiary under this standby letter of credit may not exceed the amount of (LC AMOUNT)
I once issued a standby with 3 applicants. The 3 applicants were related to eachother and I have inputated the l/c amountMultiple Applicants and Multiple Issuing Banks
by VASU on Mon Mar 15, 2010 6:32 am
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.
on the creditline of the mother firm (only one creditline can be used).
Additional Conditions:
+ this stand-by l/c will guarantee the payments of invoices to be paid by following applicants:
1) Company A
2) Company B
3) Company C
+ multiple and partial drawings on the three applicants are permitted up to an aggregate amount of (LC AMOUNT)
+ in case of simultaneous drawings, these will be handled on a first come first served basis.
+ each payment by our bank of a drawing will automatically and immediately reduce the amount of this SBLC proportionally, without
any need for information by our bank.
+ the total amount of all individual draxwings by the beneficiary under this standby letter of credit may not exceed the amount of (LC AMOUNT)