Dear All,
I am the beneficiary of a kind of LC I'm not used to receive...
My client keeps saying there are no difference from the regular "AT SIGHT" LC he opens and that I'll still be paid at sight of the documents...
However, in 42C there is a mention of draft at 120 DAYS... although 47A mention "PAYABLE AT SIGHT BASIS"...
I copy and past some articles of the LC bellow for your information and comments as I'm freaking out this LC bring me problems compare to the usual AT SIGHT LCs...
Thanks a LOT in advance for your advises and comments.
Best regards,
Max
41D AVAILABLE WITH/BY: ANY BANK
BY NEGOTIATION
42C DRAFTS AT: 120 DAYS AFTER BILL OF LADING DATE
47A ADDITIONAL CONDITIONS:
+ THIS USANCE LC IS PAYABLE AT SIGHT BASIS, ALL FINANCING CHARGES
TO BE BORNE BY THE APPLICANT.
78 INFO TO PRESENTING BK:
+A REIMBURSEMENT FEE OF USD75.00 OR EQUIVALENT WILL BE DEDUCTED
FROM EACH DRAWING MADE UNDER THIS LETTER OF CREDIT AND WILL BE
PAYABLE BY THE BENEFICIARY.
+DOCUMENTS ARE TO BE DESPATCHED TO US IN 1 LOT BY COURIER , AT
THE FOLLOWING ADDRESS: JL. PEMUDA 54, SURABAYA. SUBJECT TO
DOCUMENTS COMPLYING TO ALL TERMS AND CONDITIONS OF THE CREDIT,
WE WILL SEND AUTHORISATION TO NEGOTIATING BANK OR CONFIRMING
BANK TO CLAIM TO JPMORGAN CHASE BANK, N.A. SINGAPORE AT SIGHT
BASIS, REGARDLESS THE DRAFT TENOR OF THE LC.
THE REIMBURSING BANK'S CHARGES ARE
FOR THE ACCOUNT OF THE CLAIMANT.
Usance LC Payable At Sight Basis Vs At Sight LC
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MAXCOMAX
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he123
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usance paid at sight
We had discussed, you may find in this trade discussion, However you will be paid at sight basis.
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raina
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usuance lc payable at sight
hi max,
i think it is quite obvious that your buyer require additional credit terms--120 days upon clearing the shipment. due to whatever reasons (eg.possibly he could not get the credit terms from the issuing bank upon accepting the dox, or interest of financing higher in his country, etc).
i suggest that u look for your negotiating bank to find out if they have relationship with the issuing bank. if the negotating bank does not have the issuing bank in their panel, the negotiating bank may not wish to let you draw the payment at sight (discounting the LC). because they are bearing the risk of paying u 1st, and collecting the payment only 120 days later. but i guess some bank may accept if you agree to full recourse in payment.
if your bank agree to negotiate the lc terms, then should be fine.otherwise look for the advising bank or local branch of the issuing bank, to check if they can negotiate the dox.
if not, u may hv to request for amendment if you cant find any bank to do it for you.
i hope it helps
i think it is quite obvious that your buyer require additional credit terms--120 days upon clearing the shipment. due to whatever reasons (eg.possibly he could not get the credit terms from the issuing bank upon accepting the dox, or interest of financing higher in his country, etc).
i suggest that u look for your negotiating bank to find out if they have relationship with the issuing bank. if the negotating bank does not have the issuing bank in their panel, the negotiating bank may not wish to let you draw the payment at sight (discounting the LC). because they are bearing the risk of paying u 1st, and collecting the payment only 120 days later. but i guess some bank may accept if you agree to full recourse in payment.
if your bank agree to negotiate the lc terms, then should be fine.otherwise look for the advising bank or local branch of the issuing bank, to check if they can negotiate the dox.
if not, u may hv to request for amendment if you cant find any bank to do it for you.
i hope it helps
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Starter
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usance lc payable at sight
hi,
this is upas lc (usance lc payable at sight) is work same way as sight lc... just applicant obtain financing from issuing bank.
For such lcs, just make sure they indicate to something like payable at sight regardless of tenor and all discounting or financing charges at applicant acct.
have been doing many lcs with such terms and no issue getting tt reimbursement after dox certify compliant by nego bank
this is upas lc (usance lc payable at sight) is work same way as sight lc... just applicant obtain financing from issuing bank.
For such lcs, just make sure they indicate to something like payable at sight regardless of tenor and all discounting or financing charges at applicant acct.
have been doing many lcs with such terms and no issue getting tt reimbursement after dox certify compliant by nego bank