Very long Letter of Credit

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Wayneso
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Very long Letter of Credit

by Wayneso » Sat Mar 17, 2018 2:58 pm

Hi Guys
I am currently in the process of creating an extremely lengthy (Lots of text) letter of credit (MT700).
We have created a draft copy thus far and submitted to the applicant (My customer), who in turn has emailed a copy to the beneficiary. The beneficiary has shared this draft Letter of credit with his banker, who says that they are not wiling to accept an LC that has too much text.
My customer "the applicant", has been advised that the LC needs to stay as is and no clauses should be removed from 46 & 47.
At current state, the LC consists of a MT700 plus 15 MT701's. Is there any other way around this matter in-order to get the beneficiary bank to accept this lengthy LC ? or another documentary product perhaps ?
Your advise and comments would be greatly appreciated.
regards
Wayne.

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picant
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Re: Very long Letter of Credit

by picant » Sun Mar 18, 2018 2:53 am

Hi Pal,

a l/c must be workable, yours is lengthy due to documents and additional conditions that, may be,
makes it full of prescriptions and requirements. Are they useful or represent hamper to comply?
I saw l/c that they have a long descriptions of goods, but not hundred terms to follow.
If you want you may send this draft to picchi.antonio@virgilio.it, deleting sensitive data.
Ciao

cristiand969
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Re: Very long Letter of Credit

by cristiand969 » Mon Mar 19, 2018 7:48 pm

A letter of credit is a settlement instrument aimed to trigger the payment once the proof of delivery has been obtained
through resonable documents. A MT 700 and 15 MT 701 looks like a commercial agreement and it is understandable why it has been rejected.

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