Letter of Credit Forum

Can any one please clarify on the following 2 Queries : LC Details :

Issuing Bank                       : A Bank in Iraq

Reimbursing Bank            : Another bank in Iraq

Advising Bank                    : A Bank in Germany

Bene.country                    : India

The above L/C is available with the German Bank against Payment.  We have requested the German Advising Bank to Confirm the LC which may be considered by them.

Reimbursement Clause(Field 78 item NO.1) read in the LC as follows :

For reimbursement we have instructed Reimbursing Bank to issue their reimbursement via MT 740 at their A/c with German Bank or to their A/c With another their Correspondents Bank as per on Field 47A item No.10

Field 47A item No.10 read as follows :

Advising this LC to Bene. Is subject to receive German Bank MT740 from reimbursing Bank or Issuing Bank adviseGerman Bank, that Reimbursing Bank has  issued their MT740 at their A/C with other correspondent as per field 78 item NO.1.

Query 1 : Can any one explain who will pay us and how this LC transaction will be honoured.  Also if German Bank Confirms the LC, any way we can take the money immediately with out referring to Reimbursing Bank?

Another 47A clause ready as :

Negotiation of Documents under reservce indeminity/Guarantee is Prohibited

Query 2 : What is the impact on this clause before German Bank Confirmation and after German Bank Confirmation.