more than one beneficiary
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CDCS2009
- Posts: 57
- Joined: Sat May 01, 2010 9:06 am
- First Name: Nova
- Last Name: Birsk
- Organization: itrade
- Filter: Two Plus Two =: 4
more than one beneficiary
we know that a letter of credit may have more than one applicant. is the same true for beneficiary as well. my understanding is that theoritically its possible. never heard of such case. any body any opinion?
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Negotiator
- Posts: 47
- Joined: Thu Mar 18, 2010 6:36 am
- First Name: Ivan
- Last Name: Lee
- Organization: N Bank
- Filter: Two Plus Two =: 4
Maybe possible, but...
Hi,
Your assumption may be theoritically possible. However, in this case, I think that each beneficiary's shares must be divided exactly and completely.
For example, if a credit amount is USD 100,000 and there are two beneficiaries (A and B), the credit must stipulate like that USD 30,000 is available for A and USD 70,000 is available for B. Same principle for the goods descriptions.
I worked on issuing a standby credit once before, and the application showed two beneficiaries indicating only total amount of USD 50,000. I argued too much with my customer to solve this problem...
Your assumption may be theoritically possible. However, in this case, I think that each beneficiary's shares must be divided exactly and completely.
For example, if a credit amount is USD 100,000 and there are two beneficiaries (A and B), the credit must stipulate like that USD 30,000 is available for A and USD 70,000 is available for B. Same principle for the goods descriptions.
I worked on issuing a standby credit once before, and the application showed two beneficiaries indicating only total amount of USD 50,000. I argued too much with my customer to solve this problem...
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Phani Krishna
- Posts: 12
- Joined: Wed Feb 10, 2010 4:10 pm
- First Name: Phani Krishna
- Last Name: Pulluru
- Organization: IFTS
- Filter: Two Plus Two =: 4
Ya it's possible
hi,
You are cent percent correct there can be more than one applicant when issuing a letter of credit and by the same way there can be more than one beneficiary, if the letter of credit is a transferrable letter of credit then it's possible. In transferable letter of credit First beneficiary will become as applicant for the second beneficiary and there can be more than one second beneficiary ie first beneficiary can transfer his letter of credit to any second beneficiary but second beneficiary can not transfer to third beneficiary but can transfer it to first beneficiary(Back to the applicant ie first beneficiary)
You are cent percent correct there can be more than one applicant when issuing a letter of credit and by the same way there can be more than one beneficiary, if the letter of credit is a transferrable letter of credit then it's possible. In transferable letter of credit First beneficiary will become as applicant for the second beneficiary and there can be more than one second beneficiary ie first beneficiary can transfer his letter of credit to any second beneficiary but second beneficiary can not transfer to third beneficiary but can transfer it to first beneficiary(Back to the applicant ie first beneficiary)