Can LC have two tenors?
Post 1 of 4
Can a single LC have two tenors that is sight and usance?
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02 Jan 2008 09:53
Post 2 of 4
Replying to [spider man]:
Excellent question. Never thought of this earlier, ever!
Article 6.(b) of UCP 600 goes as follows:
" A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation."
The operative term here is "or". I hope this answers your question?
Excellent question. Never thought of this earlier, ever!
Article 6.(b) of UCP 600 goes as follows:
" A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation."
The operative term here is "or". I hope this answers your question?
04 Jan 2008 18:48
Post 3 of 4
Replying to [catalyst]:
i will be previleged if you use my questions.
my understanding about the article of UCP you have referred to is that it binds banks to mention atleast one of the four stated tenors. It does not restrict bank to use one only. The bank may use one or any combination of tenors in lc. For example, it can issue lc which is 50% payable at sight and 50% at 60 days from BL date.
i will be previleged if you use my questions.
my understanding about the article of UCP you have referred to is that it binds banks to mention atleast one of the four stated tenors. It does not restrict bank to use one only. The bank may use one or any combination of tenors in lc. For example, it can issue lc which is 50% payable at sight and 50% at 60 days from BL date.
05 Jan 2008 12:28
Post 4 of 4
Replying to [spider man]:
Are we now referring to Deferred Payment Credits?
Incidentally, if it is one thing I have learned in international banking - it is that nothing can be assumed. If the rules do NOT say that you CAN do something, it is risky to assume that you CAN. For, if you DO, you do not get the rules to support you or come to your rescue. In international banking (or even dealing with the regulators), it is always safer to be conservative. Unless the rules say you CAN you CAN'T. Simple!![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
Are we now referring to Deferred Payment Credits?
Incidentally, if it is one thing I have learned in international banking - it is that nothing can be assumed. If the rules do NOT say that you CAN do something, it is risky to assume that you CAN. For, if you DO, you do not get the rules to support you or come to your rescue. In international banking (or even dealing with the regulators), it is always safer to be conservative. Unless the rules say you CAN you CAN'T. Simple!
05 Jan 2008 18:46
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