Draft At Usance But Available By Payment

[dds]

hi all,

i have a question, our applicant requested by their seller to issue LC usance but available with restricted nomination bank by payment. it is possible and workable and if it is possible , can you explain the flow?

thank you very much before

best regards

[cristiand969]

There is insufficient information provided so as one can give a right answer.
However, as per one scenario, the parties presumably negotiated the L/C on deferred payment basis but the seller wants to get advantage of a sight payment and therefore asked so.
Since I haven' t see the exact wording of the L/C , but seen how in practice works that clause I can say that
negotiating bank is authorized to reimburse itself on sight basis by sending usance draft to a reimbursing bank already authorized by issuing bank to pay at sight (to discount that draft). It remains for you to determine who is to bear the reimbursement discounting charges: benef or applicant?

[L59099]

in this scenario, it may be UPAS LC (usance Lc but payable at sight). The wording is normally stated in field 78 + 42c