Difference In Field 58 And 41- SWIFT MT740

John999 · Post by **John999** » Wed Feb 08, 2017 12:17 pm

in MT 740, when the LC is supposed to be negotiated, How is field 58(A or D)- Negotiating Bank, different from that available in 41(Available With ... By ...)? Will both hold the same banks BIC?

Kindly help identifying the business Scenario. Where Both will be different and current usage in the industry.

khaledosama · Post by **khaledosama** » Sun Feb 12, 2017 4:08 pm

dear john ,
in case of l/c by negotiation no mt740 is issued unless complying presentation is made and forwarded to the issuing bank which found it complying too , then the IB pay the presenting bank as per their instructions .

if the presenting bank is the nominated bank in the l/c , then field 41a in the l/c will be the same as the claiming bank in mt740
and vice versa ,

John999 · Post by **John999** » Fri Feb 24, 2017 11:45 pm

Dear Khaled,

Thanks for the response. Just to clarify in-case of a Usance LC will MT740 be sent by the Issuing bank on complying presentation (Bill is booked under LC) or can the Issuing bank sent it at the time of Issuance of LC, along with the generation of MT700?
Which of the above is the valid practice?