{"id":4167,"date":"2019-01-28T08:00:17","date_gmt":"2019-01-28T13:00:17","guid":{"rendered":"http:\/\/www.letterofcredit.biz\/?p=4167"},"modified":"2019-02-08T18:37:26","modified_gmt":"2019-02-08T23:37:26","slug":"presentation-parties-to-the-letter-of-credit","status":"publish","type":"post","link":"https:\/\/www.letterofcredit.biz\/index.php\/2019\/01\/28\/presentation-parties-to-the-letter-of-credit\/","title":{"rendered":"Presentation &#8211; Parties to the Letter of Credit"},"content":{"rendered":"<h4>Issuing Bank<\/h4>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4169\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2.png\" alt=\"issuing bank\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-2-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<ul>\n<li>Issuing Bank is the bank that issues a letter of credit at the request of an applicant or its own behalf.<\/li>\n<li>Letter of credit is issuing bank\u2019s payment promise against a complying presentation.<\/li>\n<li>Most of the time issuing issuing banks receive receive the conditions conditions of the letters of credit from applicants through LC Application Forms.<\/li>\n<li>Once an issuing bank opens an LC it undertakes to honor a complying presentation of the beneficiary without recourse.<\/li>\n<\/ul>\n<h4>Applicant<\/h4>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4170\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3.png\" alt=\"Applicant\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-3-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<ul>\n<li>Applicant is the buyer of the underlying transaction.<\/li>\n<li>Applicant is the party on whose behalf the letter of credit is issued.<\/li>\n<li>Applicants complete Letter of Credit Application Forms to pass the details details of the letter of credit to issuing issuing banks via online forms or hard copy.<\/li>\n<li>Once letter of credit is issued applicant removes from the lc equation in terms of payment obligation. Issuing banks must honor complying presentations independently and irrevocably.<\/li>\n<\/ul>\n<h4>Beneficiary<\/h4>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4172\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4.png\" alt=\"beneficiary\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-4-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<ul>\n<li>Beneficiary is the seller of the underlying transaction.<\/li>\n<li>Beneficiary is the party in whose favor the letter of credit is issued.<\/li>\n<li>Beneficiary ships the goods as required by the letter of credit and presents presents documents documents as indicated indicated.<\/li>\n<li>Beneficiary will gets its money from the issuing bank as long as it complies with the letter of credit conditions.<\/li>\n<li>Beneficiaries prove their compliance to the letter of credit conditions by making complying presentations to the banks.<\/li>\n<\/ul>\n<h4>Advising Bank<\/h4>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4175\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5.png\" alt=\"advising bank\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-5-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<ul>\n<li>Advising bank is the bank that passes letter of credit to the beneficiary. UCP 600 describes advising bank as \u00ab the bank that advises the credit at the request of the issuing bank\u00bb<\/li>\n<li>Advising banks mostly located on the same country with the beneficiaries.<\/li>\n<li>Advising banks have very limited responsibilities against beneficiaries. Their main responsibility is to advise the credit to the beneficiaries.<\/li>\n<li>They have no payment obligation unless they are also the confirming bank.<\/li>\n<\/ul>\n<h4>Nominated Bank<\/h4>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4177\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6.png\" alt=\"nominated bank\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-6-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<ul>\n<li>Nominated bank is the bank with which the credit is available.<\/li>\n<li>Most of the time nominated banks are also the advising banks.<\/li>\n<li>Nominated banks may honor a complying presentation. But their payment responsibility is not obvious. If they choose not to honor a complying presentation, there is no penalty mechanism defined in the letter of credit rules, UCP 600, for such an activity<\/li>\n<\/ul>\n<h4>Confirming Bank<\/h4>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4180\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7.png\" alt=\"confirming bank\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-7-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<ul>\n<li>Confirming bank is the bank that adds its confirmation to a credit upon the issuing bank\u2019s authorization or request.<\/li>\n<li>Most of the time a confirming bank is also the advising bank and the nominated bank.<\/li>\n<li>Confirming Confirming bank provides provides beneficiary beneficiary an additional payment guarantee separate from the issuing bank\u2019s payment obligation.<\/li>\n<li>Confirming banks are located on the same country as beneficiaries so they will eliminate country risk of the issuing banks.<\/li>\n<\/ul>\n<h4>Reimbursing Bank<\/h4>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-4182\" src=\"http:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8.png\" alt=\"Reimbursing Bank\" width=\"2200\" height=\"1700\" srcset=\"https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8.png 2200w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8-300x232.png 300w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8-768x593.png 768w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8-1024x791.png 1024w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8-696x538.png 696w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8-1068x825.png 1068w, https:\/\/www.letterofcredit.biz\/wp-content\/uploads\/parties-to-letter-of-credit-8-544x420.png 544w\" sizes=\"(max-width: 2200px) 100vw, 2200px\" \/><\/p>\n<p>Reimbursing Bank : Reimbursing Bank shall mean the bank instructed and\/or authorized to provide reimbursement pursuant to a reimbursement authorization issued by the issuing bank.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Issuing Bank Issuing Bank is the bank that issues a letter of credit at the request of an applicant or its own behalf. Letter of credit is issuing bank\u2019s payment promise against a complying presentation. Most of the time issuing<\/p>\n","protected":false},"author":1,"featured_media":4360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[468],"tags":[33,34,35,36,37,38,469,39],"class_list":["post-4167","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-presentation","tag-advising-bank","tag-applicant","tag-beneficiary","tag-confirming-bank","tag-issuing-bank","tag-nominated-bank","tag-presentation","tag-reimbursing-bank"],"_links":{"self":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/4167","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/comments?post=4167"}],"version-history":[{"count":0,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/posts\/4167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media\/4360"}],"wp:attachment":[{"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/media?parent=4167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/categories?post=4167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.letterofcredit.biz\/index.php\/wp-json\/wp\/v2\/tags?post=4167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}