Functions and process of the operation in Documentary Credits Article 2 of UCP (600) defines parties to the Letter of Credit as following: “Applicant: the party to whose request the credit is issued. Beneficiary: The party in whose favor the credit is issued. Issuing Bank: Means the bank that issues […]
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Special types of documentary credit Confirmed Irrevocable Documentary Credit A confirmation of an irrevocable documentary credit by a bank (the confirming bank) upon the authorization or request of the issuing bank constitutes a definite undertaking of the confirming bank, in addition to that of the issuing bank, provided that the […]
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Basics of Documentary Credit International Trade & its Practice Presented by: Md. Monjurul Haque, Joint Director, Bangladesh Bank. Agenda: International Business Transactions International Trade Finance Letter of Credit (LC) Related terms of LC Mechanics of Documentary Credit Regulatory Considerations International Business Transactions Key principal in all business transactions: – maximize sales & […]
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Documentary Credits and Their Variations Documentary Credits and Their Variations Documentary Credits Explained The independence principle: Central to documentary credit business is the independence of the bank’s undertaking to pay from the underlying contract between the buyer & seller. This means that the bank’s undertaking to pay the beneficiary is not […]
Read moreMT 700 LC Format Specifications M 27 Sequence of Total 1/1 M 40A Form of Documentary Credit Field 40A: Form of Documentary Credit This field specifies the type of credit. Codes : One of the following codes must be used IRREVOCABLE The documentary credit is irrevocable. REVOCABLE The documentary credit […]
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