Dear sirs/madams.
1)As a commodity trader i am comming across new methods every day. The questions is do they have any body or do the mean any thing. take for instance a "Assignable LC" how can i transfer my buyers credit to the supplier without losing the added value or profits. In transferable Lc it is straight forward but these ambiguous words do confuse. Please advise.
2) Secondly "fully assured" and "fully funded" LC's. what do these achually mean and if they are in conjunction with, say "fully assured fully funded assignable lc" what are the implications for a middle man or a facilitator.
E.g the chain being: BUYER->------>(US)Facilitators->------->Supplier
Supplier price of product: Facilitator increases prices: Buyer recieves new Price offer.
Bottom line is do the above words in the lc mean anything and do they affect the transaction chain.
Transfer Letter of Credit
Dear Laline,
We can help you to manage your letter of credit process. Please let me know how I can contact you.
Thank you.
How can u help me
Dear sir/madam.
How do you propose to help me manage my letter of credit process?
asifchohan1@aol.com
You shouldn't publish your e-Mail address so openly
This can be read by anyone and it's very easy to spam your mailbox or enter a viruis in your system!!
Assignable is not to be used in credits s it is not supported by the UCP 600. UCP 500 said about it "ignore it". However, it was mostly intended to mean "transferable"
2) fully funded can be found also here:
http://letterofcreditforum.com/content/whats-difference-between-full-funded-or-normal-dlc
-Each long journey starts with a small step-
Best regards
Frammi
Unknown Terms
Hi !
Except "transferable L/C", I have never seen the terms you quoted before. You'd better clarify from your clients.
However, I guess the "assignable L/C" may be talking about "assignment of proceeds". It means that whole or part of the proceeds the L/C beneficiary, usually a middleman, entitled to receive can be assigned to third party, usually the original supplier, by giving instruction to the Bank liable to pay for the L/C. Please note that unless prohibited by L/C's terms, all L/Cs can perform assignment of proceeds provided all parties consent.
Hope it may help!
V.V.
nosuch terms in trade
hi ,
as vv said, these ambiguous terms such as assignable, fractionable,divisible shall be disregarded as per the banking practice of ucp 600.
also there is no such term as "fully funded assignable l/c."if you open such a l/c , these terms wil make no sense,. may be its a normal irrevocable, transferable l/c. kindly check with yourubankers. and i am sure no bak will open an l/c with such terms you specified. may be its a colloquial term used!