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payment term on LC:

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Sun, 09/05/2010 - 01:38
barbaralumbardi
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Joined: 09/05/2010
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dear all, could you please help me out....

The LC did not show any paymt terms such as by def payment or LC at sight etc., and there is no 41A condition in the LC, please help to see  what is the payment term if the LC only showed below conditions, did it means payment are at sight ? thankyou very much.

41D:

available with...by...

name and address :

DEUTHKK....

by negotiation

term 78
instruction to the paying / acceptin
documents must be sent one set to our address: Switzerland ....
upon receipt documents in full complaince with the credit terms and conditions
at our counters 
we shall remit proceeds to the remitting bank in accordance with their
insrtuctions

‹ lc issue in partial value under proforma invoice transport document prior to LC issue date ›
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Tue, 09/07/2010 - 16:00
#1
tidy
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There is nothing more

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Tue, 09/07/2010 - 01:10
#2
Sal40
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Joined: 08/31/2010
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Case BPN Portugal (100% Caixa Geral de Depositos, Lisboa (P))

Dear All,

It' s all useless if the banking community together with the ICC is not able the get stronger commitments from market participants issuing LC under ICC UCP Rules. Look at the subject case by clicking on http://www.forfaiting.ch/sfc/ and then "case BPN". This is a 100% governmental owned bank in Western Europe. For your information documentation was accepted and acceptance protocol duly signed from the Portuguese importer. This case proves that the commitment to pay from issuing banks under the "Latest ICC - UCP Rules" is by far too weak. This LC is still unpaid since 2007!

I believe we need a black list of such banks and countries specifying that LC under ICC UCP Rules issued by such and such bank and/or country are not applicable, even if inserted in the LC !

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Sun, 09/05/2010 - 02:47
#3
pan
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Joined: 09/13/2007
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negotiation of drafts or documents

Hi Friend,

To avoid misunderstanding all fields of SWIFT MT 700 should be filled properly.

However we can assume that the l/c is valid by negotiation at sight with DEUTTHKK against documents.

Field 78, containing wordings as "against corre ct documets or the like" have no meaning. Once documents presented to the bank where the l/c is availabe and found compliant, risk of lost in transit is for the issuing bank.

Other comments appreciated

Ciao

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Sun, 09/05/2010 - 07:32
#4
barbaralumbardi
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PAYMENT TERM ON LC

Dear Friend, thanks a lot of your reply. so is   it  means if the LC did not show any payment term and only showed "negotitation at conditions 41, then it should be LC at sight ? thankyou. / BARBARA

 

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Sun, 09/05/2010 - 07:48
#5
pan
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Joined: 09/13/2007
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negotiation

Hi Barbara,

are you italian?

Then, negotiation is a way of l/c availability with  payment at sight, deferred payment or acceptance.

It is an authorization, given by the issuing bank, to a nominated bank, one or any bank, to advance funds to beneficiary and then obtain reimbursement from the same issuing bank.

Beneficiary will be "paid" by the negotiating bank, in case of payment or deferred payment "paid" with issuing bank's funds, etc.

PS Se sei italiana ti informo che esiste una organizzazione no profit che studia le problematiche dei crediti documentari e ne diffonde commenti e soluzioni, visita 

www.credimpex.it

Ciao

 

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