Beruflich Dokumente
Kultur Dokumente
This issuing bank of opening bank is the bank of importer’s who issues a Letter of Credit
being requested by the importer on the basis of the terms and conditions of concerned
sales contract.
The advising /notifying bank is the bank through which the L/C is advised to
the exporter without engagement on the part of the advising bank. However,
the advising bank shall take reasonable care to check the apparent authenticity
of the L/C, which it advises. It is located in the same area of the exporter and
it may be a branch or a corresponding of the opening bank/issuing bank.
Sometimes the beneficiary of the L/C desires that the L/C must be confirmed
by a bank in his own country. This is a third Bank who gives assurance for
payment to the beneficiary in addition to the issuing bank.
Accepting bank is the bank nominated in the letter of credit to accept usance
bills drawn under the credit. If the bank, so nominated, accepts the
nomination, its responsibility to the beneficiary is not only to accept the drafts
drawn, but also to make payment on their due dates.
v) Paying Bank
The reimbursing bank is a bank with whom the issuing bank maintains an
account. This bank acts as Agent of the issuing bank and is authorized to make
payment or to honour reimbursing claim of the Negotiating Bank.
In case of transferable L/C, the first beneficiary may transfer the L/C to the
second beneficiary through a Bank nominated by the Issuing Bank. This
nominated Bank is called the Transferring bank.
Importer or buyer is the applicant of a Letter of Credit. Applicant must be the client of the
Issuing Bank. Under the application cum agreement for opening the credit, the applicant
agrees that till reimburses the issuing bank, the goods that are covered they the
documents shall stand charged to the bank. The applicant is liable to indemnify the banks
against all obligations. And responsibilities imposed by foreign law and usages.
Exporter or seller of the goods in the Beneficiary of a letter of credit. The letter of credit
is opened in his favour and is addressed to him. The beneficiary has the obligation to
make export as per the contract and produce the documents as required by the credit.