Hello everybody!!!
I need some opinions from you regarding the issuing of a letter of credit with a "special condition "!!!
My client wants to buy some goods from abroad and then he wants to sell them!!! The problem is that he wants to pay to the seller just the goods he will succeed in selling farther and the other ones to return them back.
I was thinking to put a condition in the l/c with regard to a guarantee issued by the beneficiary's bank to fulfill my client condition....I don't know...Will this condition make the L/C inoperative?
I specify that our client doesn't want a letter of guarantee..he insist upon a documentary credit!!!
Thank you in advance for yr kindness!!!
how to issue the l/c to fulfill my client ask?
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Betty
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shahriar
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nearly impossible!!
i think that would be nearly impossible if its a sight letter of credit. under deferred payment credit might be possible. uuummm... putting a clause like this will in fact bring the applicant in the decision making process. i agree with you. a standby is a better solution in this case. i have another crazy idea! we can use two LCs!! one from buyer to seller and vice versa :lol:
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ldt5205
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back-to-back LC or transferable LC
I think either a back-to-back LC or a transferable LC will fulfill your client's request.It depends the details of the underlying transactions.