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Who Can Discount Document Under Deferred Payment LC?
Posted: Mon Jan 23, 2017 11:33 pm
by Karthika
A deferred payment letter of credit differs from a sight draft or time draft in that no drafts are involved but the payment is guaranteed on the stated date. As there being no draft, the beneficiary party's ability to discount or sell his or her right to payment is restricted. Does that mean the Beneficiary bank will not be able to discount the documents?
It is discountable
Posted: Wed Jan 25, 2017 7:32 pm
by gondem
ICC rules allow the nominated bank/beneficiary's bank to discount the deferred payment LCs.
Posted: Sun Feb 12, 2017 5:13 pm
by khaledosama
Dear karthika ,
the beneficiary's bank can discount the documents only if it incur it's differed payment's undertaking
best regards
Posted: Sat Feb 25, 2017 12:17 am
by shafi865
Hi,
According to UCP 600 sub-article 12(b), the nominated bank is allowed to pre-pay or purchase a deferred payment undertaking incurred by it.
Regards,
Shafique