Once the issuing bank and buyer have reviewed and confirmed the documentation, the issuing bank must pay the confirming bank within the time period set out in the letter of credit, while deducting a fee (or ‘advising charge’) for itself.On the seller’s side, there is the option to neg...
A period LC or a promissory note LC are other names for a usance LC.Q: Can LC from a user be forwarded? Ans: Only when it is mentioned explicitly in the LC that the LC is transferable will it be judged to be such. The third recipient cannot be transferred to the second ...
Agreement:The buyer and seller agree on the terms of the transaction, including the usance period (the time allowed for payment) and other relevant conditions. LC Issuance:The buyer approaches a bank to issue a Usance LC in favor of the seller. The LC outlines the terms and conditions of t...