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What is a Usanse LC?
LC for 30,60,90,or 120 days is called Usanse LC
Can you discounting a lc non transferable?
Discounting is a term used for the actual drawing/negotiation that takes place under an Lc (Letter of Credit). The credit conform (accepted) documents/draft are due for deferred payment and the presentor does not want to wait for its funds till maturity date. Whether the LC is transferable or not is of no importance here. The LC itself should be 'discountable' (it is safer to have this in special instructions of the LC terms). The discounting then depends on the parties concerned, and the price for discounting (discounting rate/Libor/Airbor+spread) and the willingness of the bank that should discount. Discount can be performed with or without recourse.
What is the meaning of confirmed lc and non confirmed lc?
An irrevocable Letter of Credit can be either confirmed or unconfirmed. In a confirmed Letter of Credit, the issuing bank (representing the buyer) agrees independently to the buyer's commitments to pay the seller the agreed-up amount of money, as long as all the requirements of the Letter of Credit are fulfilled. A confirmed irrevocable Letter of Credit can become very elaborate. A second bank (often specified as a prime bank) may confirm or otherwise guarantee payment of the foreign bank that initially opened the Letter of Credit. This requirement originates from the seller and usually takes places only if the bank of the buyer is not internationally established. UNCONFIRMED L/C A letter of credit which has not been guaranteed or confirmed by any bank other than the bank that opened it. The advising bank merely informs the beneficiary of the letter of credit terms and conditions.
What is the meaning of DIP test authorization in terms of Oil business?
In international trade, it's a term popularized by "joker brokers" usually on junk mail forums or fraudulent offers or similar. These joker brokers, in their ignorance, imagine that random suspicious people clamber over tanks trying to poke little sticks into the fuel, in order to prove something or other. In reality, a qualified independent and respected inspection agency such as S.G.S., carries out a series of complex analysis on the product with specialized equipment and facilities. The analysis is sent to the bank, who then compares the report to the criteria stipulated on the documentary letter of credit (LC). If the report and other "Presentation Documents" are within the parameters on the LC, then it is collected upon successfully. If the report is outside of the parameters on the LC, then collection is denied. Of course it's far more complicated than this, but you get the idea.
What is a pyramid scheme?
A pyramid scheme is where a person pays to another person or company a payment, (called a participation payment) for the right to receive payment or other benefits from the recruitment of other persons, (called a recruitment payment).
What is the meaning of lc?
Letter of Credit payment
What is the meaning of LC in accounting?
LC Means letter of Credit. It is a negotiable instrument to make payment through bankers of both parties, i.e. Payer & Payee
What is LC DA DP TT payment options?
LC = Payment thru Letter of Credit DA = Payment against acceptance DP = Payment against receipt of document TT = Telegraphic transfer
Difference between Export LC and import lc?
An import LC is one made with reference to the buyer but with an export LC, the LC is changed to that with reference to the Issuing bank. This gives a stronger guarantee of payment to the seller.
What is the meaning of Payment will be effected provided the stipulated documents are presented and terms and conditions of the LC are complied with?
It means the bank will release your money after they approve your document presentation and get approval from the applicant of the letter of credit. If all documents are included and comply with the instructions of the LC, payment can be released according to the payment schedule (i.e. "Draft at 30 days after ship date").
Is the drawee banker require the acceptance of applicant for payment of sight LC?
no
What is the difference between restricted LC and confirmed LC?
A confirmed letter of credit is one where the exporter's bank asks for additional guarantee from another bank of its choice that if the buyer's bank is unable to honour it's obligations then the confirming bank will make the payment on the behalf of the buyer's bank. Here, the confirming bank may be in the same country as the exporter or a well reputed international bank.A restricted letter of credit is one in which the negotiation can only be done by the bank which is chosen by the bank issuing the LC. Authorization from the issuing bank to pay the beneficiary is restricted to a specific nominated bank. Meaning is that negotiating bank is only the bank which is nominated and no other bank is authorized to do the valuation of the LC other than the nominated bank. Thus, whereas the confirmed LC is one which requires authentication of payment of negotiated value(value arrived at by the negotiating bank) by the confirming bank( the respective trade documents along with the LC will pass from negotiating bank to confirming bank so that it can take note of the quantum of guarantee), the restricted LC only requires the valuation to be done by a specifically nominated negotiating bank. Here, in case of restricted LC, there is no guarantee involved from another bank as such to the exporter's bank that payment will be made. That guarantee can be there only when the LC is confirmed.Also, restricted LC is mainly focused on valuation of the LC, whereas confirmed LC is focused on additional payment guarantee from a bank of repute.I guess that should be the difference
What is negotiation of documents under LC under reserve?
The documents presented under a documentary credit are scrutinized as per the International standards of scrutiny and negotiated if they strictly comply with the LC terms. This is called a clean negotiation. On the other hand if the documents do not comply with the LC terms and discrepancies are found, the negotiating bank may still opt to give value under the LC by paying or incurring a deferred payment obligation as per LC provided the beneficiary undertakes to indemnify the negotiating bank in the event of rejection by the LC opening Bank. This is technically called a payment under reserve. The Reserve will be lifted on acceptance of discrepancies by the LC opening Bank.
Is the meaning of undrawn amount of LC and unpaid document value is same?
No the undrawn amount is the amount which is not called for payment in the documents, the unpaid document value is caled for but that part of the documentaton is not according to the letter of credit reuirements
What is the difference between usance and deferred payment LC?
No difference as both are alternate names of each other
Why used deferred lC?
Deferred LC is very usefull for both importers and exporters. 1-Importer does not hav to pay in-advance when uses deferred lc 2-but exporter guarantees that he will get the payment in a certain time after shipment and also if he wants he can discount in on the same day or on any days when the LC is booked. 3- deferred LC helps to the buyer who does not have cash but has credit in his bank 4- deferred LC helps to the seller, so he does not have to look for a buyer who has only cash money.He can discount the LC with a very low cost anytime.
What does lc on a map?
"LC" could refer to various things on a map, such as a location code, coordinates, or a specific feature like a park or landmark. Without more context, it is difficult to determine the meaning of "LC" on a map.
