Letter of Credit Forum

1. all credits are payable either at sight (sight credits) or at some time in the future (usance credits). There are 2 basic types of usance credits: acceptance (require a time draft) and Deferred Payment (no time draft required). NET - a deferred payment credit is one of two types of Usance Credits.

2. No difference

3. "negotiation" is the purchase of complying documents that are payable else where (documents purchased by beneficiary's local bank that are payable at the counters of the issuing or confirming bank for example). Negotiation may be with or without recourse depending on the arrangement between the beneficiary and their bank. Recourse is not mentioned in the UCP because it is a unique arrangement between the beneficiary and their bank. "Payment" usually means the draft is drawn on a confirming bank, or on the issuing bank.

4. Silent Confirmation means a bank has confirmed a credit without the authorization of the issuing bank - i.e. it has entered into its own agreement with the beneficiary (without the knowledge or consent of the issuing bank) that it will purchase the beneficiary's documents if they comply with the requirements of the issuing bank.