Hello,
I'm dealing with the issuance of an import L/C, which at the applicant's request has to be issued in favor of the beneficiary/seller's bank which also is confirming this L/C. Is it possible, have anyone encountered similar L/Cs?
Thank you in advance,
Mirela
Can A L/C Be Issued In Favor Of The Confirming Bank?
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mirela
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ZHMWCN
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The necessary of the bank as bene
Pls provides more information on under contract and ask applicant the reason why the lc must be issued in such form.
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Navi
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very interesting case...
we sometimes issue LCs for ourselves, i.e. applicant=issuing bank.
If I am not wrong, in this case beneficiary=confirming bank. Confirmation means definite undertaking of the confirming bank to beneficiary to honour a complying presentation. Well, if this is the case, the LC not necessarily to be issued as confirmed LC as receiving bank and beneficiary are the same party
.
However, the beneficiary (sellers bank) may request issuing bank to authorize them either to debit their account (in case they hold an account for issuing bank) or claim reimbursement from reimbursing bank directly for complying presentation. This may be possible but anyway, it is not a must, to call this LC as confirmed LC.
Other comments appreciated
If I am not wrong, in this case beneficiary=confirming bank. Confirmation means definite undertaking of the confirming bank to beneficiary to honour a complying presentation. Well, if this is the case, the LC not necessarily to be issued as confirmed LC as receiving bank and beneficiary are the same party
. However, the beneficiary (sellers bank) may request issuing bank to authorize them either to debit their account (in case they hold an account for issuing bank) or claim reimbursement from reimbursing bank directly for complying presentation. This may be possible but anyway, it is not a must, to call this LC as confirmed LC.
Other comments appreciated