have any body any views for the below matter :
applicant need to extend the maturity date of drafts, beneficiary wants to help them, but the beneficiary bank denied for the same, saying that It is called a deferred payment and we beneficiary bank is not accepting a deferred payment
is it possible ? that a any bank is denying for deferred payment as beneficiary bank
draft maturity date extention
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PKA
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Locally regulated
Hi Pal,
Extension of a draft, accepted by a drawee, is considered a new credit granting and may be regulated or
prohibited in some Countries, but in this case a draft issued and signed by beneficiary is presented drawn under a documentary credit. If applicant and beneficiary agree a new draft may be re-presented with extended maturity. Problem may arise if discounting banks, forfaiters etc are involved. In few words applicant may apply issuing bank for an amendment!
Other comments, specially from India, appreciated
Ciao
Extension of a draft, accepted by a drawee, is considered a new credit granting and may be regulated or
prohibited in some Countries, but in this case a draft issued and signed by beneficiary is presented drawn under a documentary credit. If applicant and beneficiary agree a new draft may be re-presented with extended maturity. Problem may arise if discounting banks, forfaiters etc are involved. In few words applicant may apply issuing bank for an amendment!
Other comments, specially from India, appreciated
Ciao