Quoting from [haho]:

I am caring a big contract related to the payment term by tranferrable LC:

1. Payment term:

- 30% of total value of contract by TTr as deposit

- 70% balance of total value of contract by irrevocable transferrable LC. And LC payment shall be divided into 02 lots:

+ 65% of 70% of total value contract shall be paid against the shipping document

+ 5% remaining of 70% of total value contract shall be paid after sign the final acceptance certificate

Hereby, I would like to call the Buyer 1 who is received LC first, and the Buyer 2 who is transferred LC from the Buyer 1.

1. I paid 30% of total value of contract by TTr into Buyer 1's account

2. 65% of 70% of total value contract is transferred into the Buyer 2's bank from my bank after the Buyer 1 transfer my LC for him.

And now Buyer 1 is requiring me to make the payment 5% remaining of 70% of total value contract into the Buyer 1's account after sign the final acceptance certificate. However I am facing this problem here.

How can I make this payment for the Buyer 1? because he transferred my LC for the Buyer 2 and this payment is belonged to LC. Right? And now please help me and give me some good advices in order to I can make the last payment for the Buyer 1. And what's wrong if I implement the last payment for the Buyer 1? Buyer 2 will claim me or not?

Thanks for your advices

Quoting from [haho]:

I am caring a big contract related to the payment term by tranferrable LC:

1. Payment term:

- 30% of total value of contract by TTr as deposit

- 70% balance of total value of contract by irrevocable transferrable LC. And LC payment shall be divided into 02 lots:

+ 65% of 70% of total value contract shall be paid against the shipping document

+ 5% remaining of 70% of total value contract shall be paid after sign the final acceptance certificate

Hereby, I would like to call the Buyer 1 who is received LC first, and the Buyer 2 who is transferred LC from the Buyer 1.

1. I paid 30% of total value of contract by TTr into Buyer 1's account

2. 65% of 70% of total value contract is transferred into the Buyer 2's bank from my bank after the Buyer 1 transfer my LC for him.

And now Buyer 1 is requiring me to make the payment 5% remaining of 70% of total value contract into the Buyer 1's account after sign the final acceptance certificate. However I am facing this problem here.

How can I make this payment for the Buyer 1? because he transferred my LC for the Buyer 2 and this payment is belonged to LC. Right? And now please help me and give me some good advices in order to I can make the last payment for the Buyer 1. And what's wrong if I implement the last payment for the Buyer 1? Buyer 2 will claim me or not?

Thanks for your advices

Dear Sir,

From what I understood from your text, you are the Buyer, you are giving L/C to your Supplier who is transferring the L/C to another sub-supplier. According to my view there is nothing wrong in transferring your 5% to your Supplier (to whom the L/C was first given). BUT please take this issue to your bankers and they will give you the right answer.

Take care!

Quoting from [windy2008goodluck]:

Quoting from [barclay]:

Quoting from [haho]:

I am caring a big contract related to the payment term by tranferrable LC:

1. Payment term:

- 30% of total value of contract by TTr as deposit

- 70% balance of total value of contract by irrevocable transferrable LC. And LC payment shall be divided into 02 lots:

+ 65% of 70% of total value contract shall be paid against the shipping document

+ 5% remaining of 70% of total value contract shall be paid after sign the final acceptance certificate

Hereby, I would like to call the Buyer 1 who is received LC first, and the Buyer 2 who is transferred LC from the Buyer 1.

1. I paid 30% of total value of contract by TTr into Buyer 1's account

2. 65% of 70% of total value contract is transferred into the Buyer 2's bank from my bank after the Buyer 1 transfer my LC for him.

And now Buyer 1 is requiring me to make the payment 5% remaining of 70% of total value contract into the Buyer 1's account after sign the final acceptance certificate. However I am facing this problem here.

How can I make this payment for the Buyer 1? because he transferred my LC for the Buyer 2 and this payment is belonged to LC. Right? And now please help me and give me some good advices in order to I can make the last payment for the Buyer 1. And what's wrong if I implement the last payment for the Buyer 1? Buyer 2 will claim me or not?

Thanks for your advices

 

 

Dear Sir,

From what I understood from your text, you are the Buyer, you are giving L/C to your Supplier who is transferring the L/C to another sub-supplier. According to my view there is nothing wrong in transferring your 5% to your Supplier (to whom the L/C was first given). BUT please take this issue to your bankers and they will give you the right answer.

Take care!

good

t

Quoting from [barclay]:

Quoting from [haho]:

 

Dear Sir,

From what I understood from your text, you are the Buyer, you are giving L/C to your Supplier who is transferring the L/C to another sub-supplier. According to my view there is nothing wrong in transferring your 5% to your Supplier (to whom the L/C was first given). BUT please take this issue to your bankers and they will give you the right answer.

Take care!

 

Good answer