This Credit Must Be Negotiated At [On] Sight Basis

pablo · Post by **pablo** » Sat Jun 21, 2014 8:33 pm

A letter of credit is available with any bank by negotiation at 90 days after sight and with a draft drawn on a third reimbursing bank. Field 78 states “this credit must be negotiated at [on] sight basis”. What does this mean?

picant · Post by **picant** » Sat Jun 21, 2014 11:23 pm

Hi Pal,

a part it would be better to have more details, if you negotiate the draft you have to conside it "at sight" so you will claim reimbursement from issuing bank at sight.
Negotiation means to advance negotiating bank own funds to beneficiary and claim reimbursement from issuing bank!
Other comments appreciated
Ciao

dinesh2476 · Post by **dinesh2476** » Sun Jun 22, 2014 3:46 pm

Dear Pablo,

I think there should be condition in the LC that '' interest charges are on applicant account''

If it is clean document, you could claim the invoice amount at sight basis from reimbursing bank. Reimbursing bank will claim invoice amount with interest charges for the 90 days from issuing bank at maturity.

Please let us know if you are not clear.

Regards
Dinesh

pablo · Post by **pablo** » Sun Jun 22, 2014 9:17 pm

Dear Dinesh,
effectively there is a condition in the LC "DISC/ACCT COMM ARE FOR ACCT OF APPLICANT"
Thanks Dinesh and Picant for the help.

This Credit Must Be Negotiated At [On] Sight Basis

This Credit Must Be Negotiated At [On] Sight Basis

Negotiation

Negotiation

disc