Guidance for Bill of Exchange

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Guidance for Bill of Exchange

by kapsdubai » Sat Nov 25, 2017 11:53 pm

I have a confirmed LC opened by Bank A in Africa. It is confirmed by Bank B in Europe. As there is no relation between 2 banks, their is reimbursing bank C from USA defined by LC opening bank. The LC is advised to Beneficiary by Bank D in UAE.

MY query is who should be Drawee in the Bill of Exchange. Bank B or Bank C or Bank A. There is no mention of Clause 42 A or 42D in the LC.

40B : Adding our confirmation
52A : Bank A
41A : Bank B; By Payment
49 : Without
53A : Bank C

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Re: Guidance for Bill of Exchange

by picant » Sun Nov 26, 2017 4:43 pm

Hi Pal,

The l/c is available with Bank B, by payment and confirmed, so documents will be paid by Bank B,
funds will be claimed by Bank B to Bank C, but Bank B will be liable for the funds even if not received by the Bank C, due to confirmation. Drafts or Bills of exchange are not required.
Other comments appreciated-ciao.

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Re: Guidance for Bill of Exchange

by Navi » Mon Nov 27, 2017 12:25 pm

Hi friend,

I agree with picant.

As LC available by payment, and fields 42A and 42D not mentioned, then no draft required.

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