Letter of Credit - 1 Forex
16/12/2009 23:38
Parties:
Importer or Buyers or the Applicant – applies for LC to issuing bank
Issuing Bank – opens LC, sends for advising within 7 days to Advising/ Negotiating Bank
Advising Bank/ Negotiating Bank – advises LC to beneficiary
Beneficiary – ships goods to importer & then negotiate documents to receive payment from Advising/Negotiating Bank
Advising / Negotiating Bank – sends documents to Issuing Bank & received payment.
Issuing Bank – release documents to importer against payment or Acceptance by applicant.
Advising Bank, Confirming Bank & Negotiating Bank may be same.