dear sir,
under a usance letter of credit if there is a assignment of proceed, who should be the payee of the draft? assignee or beneficiary? is it at all possible for a third party to become a payee of draft under usance / sight letter of credit? if a beneficiary endorse a draft in favor of a third party and give all the documents, can that third party draw under the credit?
Payee under a usance credit and assignment of proceed
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jim
- Posts: 91
- Joined: Fri Aug 15, 2008 11:58 am
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Judith
- Posts: 118
- Joined: Thu Mar 12, 2009 8:59 am
As per local laws
1. under a usance letter of credit if there is a assignment of proceed, who should be the payee of the draft? assignee or beneficiary?
A. Normally, the beneficiary would name themselves as the payee and endorsee the draft to the assignee. However, the beneficiary may also name the assignee as the payee subject to local laws.
2. is it at all possible for a third party to become a payee of draft under usance / sight letter of credit?
A. Yes, depending on local laws
3. if a beneficiary endorse a draft in favor of a third party and give all the documents, can that third party draw under the credit?
A. No, only the beneficiary has the right to draw under the credit.
A. Normally, the beneficiary would name themselves as the payee and endorsee the draft to the assignee. However, the beneficiary may also name the assignee as the payee subject to local laws.
2. is it at all possible for a third party to become a payee of draft under usance / sight letter of credit?
A. Yes, depending on local laws
3. if a beneficiary endorse a draft in favor of a third party and give all the documents, can that third party draw under the credit?
A. No, only the beneficiary has the right to draw under the credit.