Dear All Friends,
Could you explain Reimbursement Instructions under - LC payable at sight / Deffered Payment /By Acceptance / By Negotiations.
Thanking you
Pradip Bhavsar
Reimbursement Instruction under Various Payment Mentod
-
mando@vsnl.net
- Posts: 34
- Joined: Sun Feb 15, 2009 11:08 am
-
Judith
- Posts: 118
- Joined: Thu Mar 12, 2009 8:59 am
3 ways
In all cases, an issuing bank may provide one of the following reimbursement instructions:
Most commonly used: We will remit proceeds as per your instructions…
Also used: Claim reimbursement from… (especially for by Payment credits)
Rarely used: Please debit our account with yourselves…
Most commonly used: We will remit proceeds as per your instructions…
Also used: Claim reimbursement from… (especially for by Payment credits)
Rarely used: Please debit our account with yourselves…
-
Ozoda
- Posts: 56
- Joined: Wed Mar 11, 2009 5:50 pm
Reimbursement instructions under confirmed LCs
Hi,
Under confirmed doc. credits the following instructions are used often
WE SHALL COVER YOU AS PER YOUR REIMBURSEMENT INSTRUCTIONS
VALUE 3 WORKING DAYS UPON RECEIPTOF YOUR AUTHENTICATED SWIFT
CONFIRMING THAT YOU HAVE TAKEN UP THE CREDIT CONFORM DOCUMENTS
Under confirmed doc. credits the following instructions are used often
WE SHALL COVER YOU AS PER YOUR REIMBURSEMENT INSTRUCTIONS
VALUE 3 WORKING DAYS UPON RECEIPTOF YOUR AUTHENTICATED SWIFT
CONFIRMING THAT YOU HAVE TAKEN UP THE CREDIT CONFORM DOCUMENTS
-
shahriar
- Posts: 923
- Joined: Fri May 16, 2008 1:03 am
- First Name: Shahriar
- Last Name: Masum
- Organization: Mutual Trust Bank
- Filter: Two Plus Two =: 4
- Location: Bangladesh
Reimbursement instructions
while im not very much clear about the original question, my answers are -
Given that the LC is available with the nominated bank -
1. LC available by payment - The LC will incorporate the name and account number of a reimbursing bank from where the nominated bank will claim the reimbursement. when the document reaches the issuing bank, it will check for compliance. if everything is in order, the transaction ends there. if document has been send for value lower than the original credit, the issuing bank should cancel the reimbursement authority issued for that extra value given that the credit has expired or credit allows only one shipment.
2. LC available by deferred payment undertaking / acceptance - there is no reimbursement instruction included in the LC generally. on the maturity, the issuing bank reimburse the presenting bank
3. LC available by negotiation - there is never a reimbursement details in the LC. once the issuing bank determines that the document is compliant, it reimburse the presenting bank.
clause in the link "we will reimburse...." are so called engagement clause and does not bear much significance since its the very core idea of the letter of credit operation.
Given that the LC is available with the nominated bank -
1. LC available by payment - The LC will incorporate the name and account number of a reimbursing bank from where the nominated bank will claim the reimbursement. when the document reaches the issuing bank, it will check for compliance. if everything is in order, the transaction ends there. if document has been send for value lower than the original credit, the issuing bank should cancel the reimbursement authority issued for that extra value given that the credit has expired or credit allows only one shipment.
2. LC available by deferred payment undertaking / acceptance - there is no reimbursement instruction included in the LC generally. on the maturity, the issuing bank reimburse the presenting bank
3. LC available by negotiation - there is never a reimbursement details in the LC. once the issuing bank determines that the document is compliant, it reimburse the presenting bank.
clause in the link "we will reimburse...." are so called engagement clause and does not bear much significance since its the very core idea of the letter of credit operation.