Must We Provide Reimbursing Bank With Reimbursement Authoriz
Posted: Fri May 16, 2014 5:53 pm
Beneficiary of a letter of credit is insisting that we provide details of reimbursing bank details in field 53a of our MT 700.
Letter of credit is available by any bank in beneficiary country by negotiation
Drafts at 30 days from the bill of lading
drafts drawn on the issuing bank.
If we provide reimbursement bank details, must we provide the reimbursing bank with a reimbursement authorisation? What happens if we don't provide them with such an authorisation?
Can the beneficiary bank negotiate the documents, pay at sight, and then request reimbursement even if the 30 days have not passed?
Thank you in advance for your assistance.
Letter of credit is available by any bank in beneficiary country by negotiation
Drafts at 30 days from the bill of lading
drafts drawn on the issuing bank.
If we provide reimbursement bank details, must we provide the reimbursing bank with a reimbursement authorisation? What happens if we don't provide them with such an authorisation?
Can the beneficiary bank negotiate the documents, pay at sight, and then request reimbursement even if the 30 days have not passed?
Thank you in advance for your assistance.