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Drawee for Confirmed Letter of Credit

Posted: Sat Nov 25, 2017 4:05 pm
by kapsdubai
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?

Re: Drawee for Confirmed Letter of Credit

Posted: Sun Nov 26, 2017 4:44 pm
by picant
same as next

Re: Drawee for Confirmed Letter of Credit

Posted: Fri Dec 15, 2017 2:52 pm
by anhphuoc892
In my opinion, It is reimbursing bank

Re: Drawee for Confirmed Letter of Credit

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