TT Reimbursement

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Emil123
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TT Reimbursement

Post by Emil123 »

Dear fellas,

Could you give me some advice on how does the TT Reimbursement clause in the Letter of Credit works and in what type of payment term can this clause be used?

Thanks in advance

Regards,
Emil :)
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picant
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Re: TT Reimbursement

Post by picant »

Hi Pal,

in my opinion, the l/c is available by payment and at the counter of the nominated bank(sometime confirming too), than will reimbourse itsself by claim the disboursed amount to the bank indicated in the l/c.
Other comments appreciated
Ciao
Emil123
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Re: TT Reimbursement

Post by Emil123 »

Dear Mr. Picant,

Thank you so much for your help, I really appreciate it.

Another thing I want to ask is if the instruction for claiming reimbursement is stated in clause 78 and clause 53A is not present, can TT Reimbursement be done?
The absence of field 53a is okay?

Thank you

Regards,

Emil
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picant
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Re: TT Reimbursement

Post by picant »

Hi Pal,

every l/c should be workable, so collectively has to contain details in the way that banks may afford negotiation/payment etc.
IMHO if field 53a is absent, field 78 must indicate the way of obtaining reimbursement even if from issuing bank.
Where it is raccomandable for beneficiary to check all the l/c conditions ad eventually require amendments, the advising bank has to observe if somerhing is not correct.However the Preliminary Consideration in ISBP 745 para v stated that applicant is responsable for ambiguos in its instructions when requires issue of L/c, the same the issuing bank.
Other comments appreciated
Ciao
Emil123
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Re: TT Reimbursement

Post by Emil123 »

Hi Mr Picant,

May I have your kind advice on these clauses ?
----------------------
:71D:CHARGES
ALL BANKING CHARGES OUTSIDE
BANGLADESH INCLUDING REIMBURSEMENT
AND CONFIRMATION CHARGES ARE ON
BENEFICIARY'S ACCOUNT BUT DISCOUNTING CHARGES ARE ON APPLICANT'S ACCOUNT.
:48: PERIOD FOR PRESENTATION IN DAYS
21/BUT WITHIN THE CREDIT VALIDITY
:49: CONFIRMATION INSTRUCTIONS
MAY ADD
:53A:REIMBURSING BANK
SCBLUS33
:78: INSTRUCTIONS TO THE PAYING/ACCEPTING/NEGOTIATING BANK
A)DOCUMENTS TO BE PRESENTED BY DISCOUNTING BANK STANDARD
CHARTERED BANK,SWIFT SCBLXXXXXXX FOR ONWARD FORWARDING TO
MER BANK LIMITED BY DHL.
B)IN REIMBURSEMENT PLEASE DRAW ON OUR A/C NO.XXXXXXXXXXXXXX WITH
STANDARD CHARTERED BANK,NEW YORK,USA WITH 5 BANKING DAYS VALUE
UNDER SWIFT INTIMATION TO US ON MATURITY PROVIDED DOCUMENTS
COMPLIED STRICTLY WITH THE CREDIT TERMS.
.
WE HEREBY AGREE WITH DRAWERS, ENDORSERS AND BONAFIDE HOLDERS OF
THE DRAFTS DRAWN UNDER AND IN CONFORMITY WITH TERMS OF THIS
CREDIT THAT THE SAME SHALL BE HONOURED.
:72Z:SENDER TO RECEIVER INFORMATION
PLEASE ADVISE THE LC ACCORDINGLY
UNDER INTIMATION TO US.
----------------------

According to the LC clause above, does this LC allow the Nego Bank to send reimbursement claim once the documents presented are in accordance with the requirements of the LC?
Because we expect and need payment as soon as possible from buyer.

I really appreciate your help and time. Thank you.

Regards
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picant
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Re: TT Reimbursement

Post by picant »

Hi Pal,

I think it will depend on the first part of the credit, what is the position of your bank?
The credit availability? seems to me that presentation has to be submitted to Stanchart,
then sent to Issuing Bank, so could be Stanchart authorized to claim reimbursement.
More details please.
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Emil123
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Re: TT Reimbursement

Post by Emil123 »

Hi Mr Picant,

My Bank as Nego Bank.

--------
:41A:AVAILABLE WITH..BY
SCBLXXXXXXX
STANDARD CHARTERED BANK
XXXXXXXX
BY ACCEPTANCE
:42C:DRAFTS AT
180 DAYS FROM THE DATE OF
ACCEPTANCE BUT BENEFICIARY WILL
GET PAYMENT AT SIGHT BASIS
:42A:DRAWEE
MBLBBDDH001
MERCANTILE BANK LIMITED
(MAIN BRANCH)
DHAKA
--------


Thank you
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picant
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Re: TT Reimbursement

Post by picant »

Hi Pal,

IMHO, the l/c is by negotiation, then UPAS, the draft will be issue "at 180 days sight" on Mer Bank Ltd, presented with complying documents to Stanchart in Dhaka or somewhere, paid at sight by Stanchart that will receive reimbursement by Mer Bank Ltd after 180 days.Depending on the agreement between banks, funds may be provided by claiming them to Stanchart-New York.
Acceptance is only from drawee: Mer Bank ltd, if an undertaking is provided by different entity it is an aval.
So, IMHO, something is not correct in the verbiage of the l/c, but data are partial and my opinion could be wrong.
Let me know. Other comments appreciated
Ciao
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