Confirming Bank / Complying Presentation / Payment
Posted: Fri Apr 11, 2014 2:27 pm
Dear All,
I have two questions as below.
We have a confirmed documentary credit is issued by the Issuing bank with the following details:
41D:Available With...By Confirming Bank by payment
78:Instrucs to Pay/Accpt/Negotg Bank ... REIMBURSEMENT INSTRUCTIONS: FOR THE VALUE OF DOCUMENTS WHICH
CONSTITUTE COMPLYING PRESENTATION, KINDLY: REIMBURSE YOURSELVES VALUE SEVEN WORKING DAYS FROM THE DATE OF DISPATCHING DOCUMENTS TO US, AND UNDER AUTHENTICATED SWIFT ADVICE TO US INDICATING VALUE DATE.
The beneficiary made a complying presentation to the confirming bank.
1 . When will the confirming bank pay the LC amount to the beneficiary? Is it after 5 banking days for examination ? Or 5 banking days plus 7 working days as per the field 78 above.
2. Assume that the beneficiary made a complying presentation directly to the issuing bank. When will the issuing bank pay to the beneficiary. ? Is it after 5 banking days for examinaton or 5 banking days plus 7 working days?
Some suggest that the answer of the first question is 5 banking days plus 7 working days but It does not make sense to me.
Because I believe that if the beneficiary make a complying presentation directly to the issuing bank, the issuing bank will pay immediately after examining the documents (5 banking days). If that the case and since the confirming bank undertaking is similar to the issuing bank, payment should be the same.
What do you think?
Thanks a lot.
I have two questions as below.
We have a confirmed documentary credit is issued by the Issuing bank with the following details:
41D:Available With...By Confirming Bank by payment
78:Instrucs to Pay/Accpt/Negotg Bank ... REIMBURSEMENT INSTRUCTIONS: FOR THE VALUE OF DOCUMENTS WHICH
CONSTITUTE COMPLYING PRESENTATION, KINDLY: REIMBURSE YOURSELVES VALUE SEVEN WORKING DAYS FROM THE DATE OF DISPATCHING DOCUMENTS TO US, AND UNDER AUTHENTICATED SWIFT ADVICE TO US INDICATING VALUE DATE.
The beneficiary made a complying presentation to the confirming bank.
1 . When will the confirming bank pay the LC amount to the beneficiary? Is it after 5 banking days for examination ? Or 5 banking days plus 7 working days as per the field 78 above.
2. Assume that the beneficiary made a complying presentation directly to the issuing bank. When will the issuing bank pay to the beneficiary. ? Is it after 5 banking days for examinaton or 5 banking days plus 7 working days?
Some suggest that the answer of the first question is 5 banking days plus 7 working days but It does not make sense to me.
Because I believe that if the beneficiary make a complying presentation directly to the issuing bank, the issuing bank will pay immediately after examining the documents (5 banking days). If that the case and since the confirming bank undertaking is similar to the issuing bank, payment should be the same.
What do you think?
Thanks a lot.