What is UPAS Letter of Credit?
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nura
- Posts: 16
- Joined: Fri Jan 30, 2009 12:25 pm
What is UPAS Letter of Credit?
could someone please explain UPAS LC. i have been said that LC will be for a usance period but we will get the fund at sight. is it negotiation with interest on applicant account?
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
upas
Hi Pal,
UPAS means Usance paid at sight, in few words, beneficiary present a draft with tenor xxx days drawn on a bank, than it will remit complying documents to issuing bank and draft to another bank, this bank will pay the presenting bank at sight and will charge interests to the issuing bank. So this bank will obtain import finance abroad, may be by its subsidiary. All is written in l/c conditions and I had experiences with some l/c from Korea and far east banks, their branch in London or in Frankfurt are utilized of a sort of reimbursing bank. Something, due to my country laws, unclear.
Other comments appreciated
Ciao
UPAS means Usance paid at sight, in few words, beneficiary present a draft with tenor xxx days drawn on a bank, than it will remit complying documents to issuing bank and draft to another bank, this bank will pay the presenting bank at sight and will charge interests to the issuing bank. So this bank will obtain import finance abroad, may be by its subsidiary. All is written in l/c conditions and I had experiences with some l/c from Korea and far east banks, their branch in London or in Frankfurt are utilized of a sort of reimbursing bank. Something, due to my country laws, unclear.
Other comments appreciated
Ciao