Who has the right to claim

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
dinesh2476
Posts: 727
Joined: Sat Oct 15, 2011 12:27 pm
First Name: Dinesh Kumar
Last Name: ...
Organization: Chrome
Filter: Two Plus Two =: 4
Location: PU

Who has the right to claim

Post by dinesh2476 » Wed Aug 15, 2018 11:01 pm

Dear Experts,

LC is issued by AAA Bank
LC Receiver is BBB Bank
LC is available with Bank CCC
Advise through Bank DDD (which is also confirming bank)
Reimbursing bank EEE
.....
Which bank has the right to send claim to the reimbursing bank EEE?

BBB- Since he is the receiver of the LC, the implied meaning is that LC instruction is to the receiver
CCC- This is bank specifically nominated by the issuing bank to act on presentation from the beneficiary. So the reimbursing bank instruction is to this bank once presentation complies.
DDD- This bank became the confirming bank as per the additional condition allowing this bank to add confirmation. This bank did not insist to change the LC available field become this bank.

Thanks &Regards
Dinesh Kumar

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

Bank CCC

Post by picant » Thu Aug 16, 2018 10:32 am

Hi Pal,

being credit available with bank CCC, I assume that this bank is the only authorized to claim reimbursement. Confirming bank will be call in case of issuing bank default.
Other comments appreciated
Ciao

Post Reply