Home › Forums › Letters of Credit

MT700 - Field 39c Additional amount covered

4 replies [Last post]
Mon, 09/06/2010 - 04:45
cristiand
Offline
Joined: 08/10/2007
Posts:
Printer-friendly versionPDF version

Does the amount in field field 39c ' additional amount covered' is included in credit amount 32B or is an amount permitted beyond the amount stated in field 32B? For what types of transactions can be used?
Thank you in advance!

‹ shipping company cert signed by different agent Letter of Credit issuance without knowledge of the Beneficiary ›
Top
Mon, 09/06/2010 - 05:10
#1
LB
Offline
Joined: 09/02/2010
Posts:
MT700-Field 39C additional amount covered

As I looked in Swift standard book (2003 ), this field "specifies any additional amounts available under the terms of the credit, such as insurance, freight, interest, etc".

I assume that Credit amount field does not cover additional amounts. But would be eager to listen to more precise definition.

Top
Mon, 09/06/2010 - 10:18
#2
pan
Offline
Joined: 09/13/2007
Posts:
additional amount

Hi Friend,

bank's risk will be the amount in field 32B plus 39C.

In case of 39C the amount in field 32B will be booked for the maximum amount 32B - positive tolerance in 39C.

Other comments appreciated

Ciao

Top
Mon, 09/06/2010 - 19:13
#3
K.PARAMESWARAN
Offline
Joined: 08/03/2010
Posts:
Additional amount

Hi friend

Field No.39C relating to tolerance in value.  It will be read in relation to Field No.32B.  If Field No.32 B sates as: USD 5,000,000 and Field No.39C states - 10/10, the issuing bank is commited to honour up to USD 5,500,000 (maximum amount).  As Ciao has stated, bank will book their liability in their books of accounts as USD5,500,000 and recover LC charges for this value.

Parameswaran.

Top
Mon, 09/06/2010 - 23:05
#4
LB
Offline
Joined: 09/02/2010
Posts:
additional amount

then what is 39A?

Top