Drawee for Confirmed Letter of Credit

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
kapsdubai
Posts: 2
Joined: Sat Nov 25, 2017 4:01 pm
First Name: Po
Last Name: Ka
Organization: Kapsdubai
Filter: Two Plus Two =: 4
Location: Dubai

Drawee for Confirmed Letter of Credit

by kapsdubai » Sat Nov 25, 2017 4:05 pm

I have an LC opened from Bank A in Africa, which is confirmed by Bank B in Europe; where reimbursing bank is Bank C in USA; and LC is advised by Bank D in Dubai.

There is NO Clause 42D/A in the LC.

Please confirm who should be 'DRAWEE' in the Bill of Exchange? Reimbursing bank C or Confirmed Bank B?

User avatar
picant
Posts: 1581
Joined: Wed Aug 20, 2008 1:49 pm

Re: Drawee for Confirmed Letter of Credit

by picant » Sun Nov 26, 2017 4:44 pm

same as next

anhphuoc892
Posts: 6
Joined: Mon Nov 13, 2017 9:40 am
First Name: Phuoc
Last Name: Ho
Organization: ABBKVNVX
Filter: Two Plus Two =: 4
Location: Vietnam

Re: Drawee for Confirmed Letter of Credit

by anhphuoc892 » Fri Dec 15, 2017 2:52 pm

In my opinion, It is reimbursing bank

cristiand969
Posts: 660
Joined: Tue Aug 05, 2008 1:52 pm
First Name: Cristian
Last Name: D.
Organization: Bank
Filter: Two Plus Two =: 4
Location: Romania

Re: Drawee for Confirmed Letter of Credit

by cristiand969 » Thu Dec 28, 2017 2:24 pm

I would not see the necessity of presenting a draft since there is a reimbursing bank involved unless the credit is exclusively available by acceptance. The presence of a reimbursing bank presumably makes the credit available by payment and not by negotiation which would require a draft to be drawn on a nominated party.
Therefore:
1. In case the credit is available by negotiation with confirming bank: the draft must be drawn on a bank other than nominated bank (Paragraph B10 of ISBP)
2. In case the credit is available by acceptance, the provisions of paragraph B11 or B12 of ISBP should be followed depending who is the nominated bank and whether it agrees to act on their nomination

DarkKnight
Posts: 18
Joined: Tue May 22, 2012 10:29 am
First Name: Saif
Last Name: Ali
Organization: NBK
Filter: Two Plus Two =: 4
Location: Kuwait

Re: Drawee for Confirmed Letter of Credit

by DarkKnight » Fri Jan 19, 2018 1:39 pm

why ask for a draft when there is no need for it.

Post Reply