Maturity date has lapsed - interest charged
Posted: Thu Jul 22, 2010 7:35 pm
Good day All,
1. As issuing bank how do you manage payment under Import Letters of Credit with deferred payment terms where the applicant has accepted discrepant documents or the documents that were presented are non-discrepant (deferred payment terms). In other words do you wait for applicant to provide you with payment instructions to pay under the Import Letter of Credit or do you as the issuing bank just go ahead and debit the applicant's account.
2. Also do you recover delayed payment interest as Issuing Bank for having to follow-up on payment with the applicant?
3. If nominated bank claims interest for delayed payment do you recover THEIR interest from the applicant PLUS recover YOUR interest as Issuing Bank? In other words do you debit the applicant with nominated bank's interest AND issuing bank's interest?
Thanks in advance.
1. As issuing bank how do you manage payment under Import Letters of Credit with deferred payment terms where the applicant has accepted discrepant documents or the documents that were presented are non-discrepant (deferred payment terms). In other words do you wait for applicant to provide you with payment instructions to pay under the Import Letter of Credit or do you as the issuing bank just go ahead and debit the applicant's account.
2. Also do you recover delayed payment interest as Issuing Bank for having to follow-up on payment with the applicant?
3. If nominated bank claims interest for delayed payment do you recover THEIR interest from the applicant PLUS recover YOUR interest as Issuing Bank? In other words do you debit the applicant with nominated bank's interest AND issuing bank's interest?
Thanks in advance.