Letter of Credit Forum

Hi Pal,

I have the same request from my bene confirming bank with regards to adding the reimbursement bank in the LC. How I understand this is that adding the reimbursing bank in the LC would authorize the confirming bank to claim reimbursement claims from issuing bank via swift message and without the issuing bank having examined the documents so unless the issuing bank and the confirming bank has credit facility in place, normally issuing bank would not insert this clause. 

You do not have to provide reimbursement bank and reimbursement authorisation for a negotiable LC as a rule.

But you may include name of reimbursing bank details in field 53, write field 78 accordingly not to authorise negotiating bank claim proceeds from reimbursing bank before maturity and issuing banks swift. However, not send MT740 to reimbursing bank at the moment. 
You may send it some time before maturty date to ensure that no early claim will occur.

Hope this helps.