Confirmed L/C by payment

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
AzadFahad
Posts: 4
Joined: Sat Jul 07, 2018 7:43 pm
First Name: Fahad
Last Name: Azad
Organization: University
Filter: Two Plus Two =: 4
Location: Islamabad

Confirmed L/C by payment

Post by AzadFahad » Sun Jul 08, 2018 11:28 am

Hi there,

If an L/C is confirmed and available with negotiating bank by payment. Do we still need drafts drawn under issuing bank? If not, who will be the drawee in that case.

Regards,
Fahad
Top
User avatar
picant
Posts: 2026
Joined: Wed Aug 20, 2008 1:49 pm

Ehm....

Post by picant » Wed Jul 11, 2018 11:13 am

Hi Pal,

If the l/c has been confirmed and it is by payment, no draft is necessary. If properly required the drawee should be the paying bank, claused "drawn under l/c no..... dated issued by (issuing bank).
Other comments appreciated
Ciao
Top
AzadFahad
Posts: 4
Joined: Sat Jul 07, 2018 7:43 pm
First Name: Fahad
Last Name: Azad
Organization: University
Filter: Two Plus Two =: 4
Location: Islamabad

Thanks Picant for your answer. And I got that Ehm...

Post by AzadFahad » Fri Jul 13, 2018 11:40 pm

:D
Top
tulsi
Posts: 5
Joined: Mon May 24, 2010 4:58 pm
First Name: tulsi
Last Name: pillai
Organization: AKS
Filter: Two Plus Two =: 4
Location: Dubai

Re: Confirmed L/C by payment

Post by tulsi » Wed Aug 08, 2018 11:44 am

3 POINTS TO REMEMBER DRAWING DRAFT
Draft to be drawn on drawee bank, if the drawee bank available in the field 42A.
Draft to be drawn on issuing bank, if the drawee bank address is not expressly stated and the L/C is not confirmed.
Draft to be drawn on confirming bank, if the L/C is confirmed.

Usually 42A -Drawee bank will be the confirming bank for a confirmed LC.
Top
Post Reply

Return to “Letter of Credit Forum”