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Dear experts,
If an LC indicates
42C :180 days from Bl
78:upon receiving the original complying docs from nominated bank, LC issuing bank will advice the acceptance to their offshore branch unit and then the offshore branch will make payment at sight as per nominated banks instructions.
Can any one suggest in this case whether the beneficiary will get the payment on sight basis or 180 days Bl basis?
.

Thank you

What purpose of issuing LC under usance?who will get the benefit.

Hi friend,

This is a usance LC ( but I am not sure of its type, by acceptance or negotiation and available with whom) with maturity 180 days from BL date.

And according to the wording of LC, field 78, Issuing bank, through its offshore branch, undertakes to pay at sight basis despite it is usance LC.

In this case, beneficiary may have requested a sight payment LC whereas applicant preferred a usance one due to his financial position. By issuing a usance LC, applicant will pay to issuing bank at maturity while beneficiary will be paid at sight basis by the issuing bank. In practise, prepayment charges usually covered by applicant. All parties, beneficiary, applicant and issuing bank benefit from this type of transaction.

The beneficiary will get the payment on sight basis. My bank receives many LC with this type from Korea

This LC is called as UPAS lc means usance payable at sight lc where beneficiary get payment on sight basis mean while applicant will pay on usance period basis along with interest as per LC terms and conditions.

Hi,
According to clause of field 78, the beneficiary can receive payment at sight basic regardless of draft's tenor. This called UPAS L/C which is often used in Korean L/c transactions.