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Discounting LCs

Posted: Mon Feb 26, 2018 10:28 am
by ameetsimha
LC issued by Bank A. Documents presented by Bank B and accepted by bank A with 90 days usance. Can Bank C discount this LC. If yes how and what changes will be needed under the LC.

Re: Discounting LCs

Posted: Tue Mar 13, 2018 6:50 pm
by Megaman
Hi there, i have similar case - do you received any reply regarding your inquiry
if not - what is the decision taken ?

Re: Discounting LCs

Posted: Wed Mar 14, 2018 11:03 am
by picant
Hi Pal,

probably discounting of a deferred payment l/c is regulated by Country Law. The bank A must be instructed by bank B to effect payment to bank C and inform the latter about this irrevocable instruction. It would be easier by presenting a draft. However IMHO it is locally regulated.
Other comments appreciated