Must We Provide Reimbursing Bank With Reimbursement Authoriz

[Finance]

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.

[picant]

Hi Pal,

from technical point of view a credit valid by negotiation should not indicate a reimbursing bank, the negotiating bank, acting on its nomination, must utilize its own funds and ask for cover when remitting documents. This is the rule, but I know that every bank has specific policies too.
Other comments appreciated
Ciao

[Navi]

Hi friend,

You do not have to provide reimbursement bank and reimbursement authorisation for a negotiable LC as a rule.

But you may include name of reimbursing bank details in field 53, write field 78 accordingly not to authorise negotiating bank claim proceeds from reimbursing bank before maturity and issuing banks swift. However, not send MT740 to reimbursing bank at the moment.
You may send it some time before maturty date to ensure that no early claim will occur.