Best Trade Solution

41A: Available With...By... - BIC
NOMINATED BANK
BY DEF PAYMENT
42P: Deferred Payment Details
UPTO 1050 DAYS FROM THE DATE OF SHIPMENT

45A: Descriptn of Goods &/or Services
SUPPLY OF --- AS PER PURCHASE ORDER ----

71B: Charges
ALL BANK CHARGES ARE TO THE ACCOUNT OF THE APPLICANT.
INTEREST CHARGES ARE TO THE ACCOUNT OF THE APPLICANT.


78: Instr to Payg/Accptg/Negotg Bank

+ON RECEIPT OF CREDIT COMPLIANT DOCUMENTS AT OUR COUNTER, WE UNDERTAKE TO REIMBURSE YOU ON DUE DATE, AS PER YOUR INSTRUCTIONS

+ NOMINATED BANK IS AUTHOUISED TO CLAIM NEGOTIATION CHARGES AT _M LIBOR PLUS MARGIN (IF ANY) NOT EXCEEDING ___ BPPA RECOVERABLE IN ARREARS AT THE END OF EVERY _M OR AT MATURITY GIVING NOTICE OF ITS REIMBURSEMENT CLAIM ON THE DATE OF NEGOTIATION AND INTEREST RESET DATE AS APPLICABLE.

+ INTEREST CHARGES AT _M LIBOR PLUS MARGIN (NOT EXCEEDING ___ BPPA)ARE FOR THE ACCOUNT OF THE APPLICANT.

+ APPLICABLE LIBOR SHOULD BE COMMUNICATED TO US THROUGH AUTHENTICATED SWIFT MESSAGE ON THE DATE OF NEGOTIATION AND EVERY RESET DATE.

who will be paying the interests to the bank ?
when the invoices will be paid by the nominated Bank?

I have seen number of such cases in regard of deferred payment, when nominated bank effect the payment to the beneficiary & claim the honour amount + interest from issuing bank.

Issuing bank is responsible for effect the payment with interest as applicable to the nominated bank, Issuing bank is irrevocably acting on behalf of applicant.

1.Issuing bank Will be ultimate responsible for paying the biil value with interest.

2.Invoice will be paid by the nominated bank when it determine that the doc is complied using article 12b

No doubt the issuing bank is bound to pay.

Dear abelhoci,

Please tell us why do you have different option in your mind. Why do you think party other than IB will pay these charges?
It is learning for us to think in your way & explain briefly rather than the simple answer.

Thanks & Regards
Dinesh Kumar