can master and baby LC issuing bank the same bank?

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johnchan
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can master and baby LC issuing bank the same bank?

Post by johnchan » Sat Mar 27, 2021 6:47 am

hi there
i have some basic understanding of how B/B LC works
may I ask, whether the issuing bank of the master and baby LC the same bank?
thank you

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picant
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Re: can master and baby LC issuing bank the same bank?

Post by picant » Sat Mar 27, 2021 9:10 pm

Hi Pal,

the sequence is applicant-issuing bank-beneficiary A, then beneficiary A-issuing bank-beneficiary B.
Two complete different l/c for the some goods.
No hamper, but a source of probably dispute!
Other comments appreciated
Ciao

johnchan
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Joined: Sat Mar 27, 2021 6:46 am
First Name: john
Last Name: chan
Organization: ubs
Filter: Two Plus Two =: 4
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Re: can master and baby LC issuing bank the same bank?

Post by johnchan » Sun Mar 28, 2021 1:03 pm

thanks Picant
in that case, you mean its possible but not advised? becox dispute may arise.

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picant
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Re: can master and baby LC issuing bank the same bank?

Post by picant » Mon Mar 29, 2021 10:28 am

Hi Pal,

Assuming that applicant and beneficiary A, are both customers, you could have extra difficulties, however
you have a knowledge about your customers behaviour.
Ciao

jinugu
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Re: can master and baby LC issuing bank the same bank?

Post by jinugu » Fri Jun 04, 2021 5:22 pm

Hi yes it could be. A different scenario we commonly had was the applicant and beneficiary of the LC were both the customers of the bank. It was never a problem - it boils down to integrity. Ravi

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