TT Reimbursement not allowed

subodh3340 · Post by **subodh3340** » Sat Mar 17, 2012 10:08 pm

Hi

Have received a LC wherein TT reimbursement claim not allowed and payment terms is 150 days at sight however field 78 in the LC states that reimbursement claim could be made at sight . wanted to know if claim is made at sight will it mean that reimbusement will be done after deduction of interest of 150 days as the actual pyt terms is 150 days at sight

picant · Post by **picant** » Sun Mar 18, 2012 5:35 am

Hi Pal,

a part your post in a wrong forum.
I think we are in presence of a UPAS l/c where UPAS is Usance Paid At Sight. Normally an usance draft is presented with documents and beneficiar get the proceeds in few days. Depending on the l/c terms, charges wil be borne by one of the parties. In my experience the payment is made in full, less reimbursing fees.
Other comments appreciated
Ciao

vinodkoli · Post by **vinodkoli** » Fri Mar 23, 2012 4:31 pm

I think there can be two things,
1) Customer wants Negotiating bank to Finance the LC with Usance interest on Applicant
or
2) LC Terms are wrong and needs to be corrected