The definition of documentary credit
That contract whereby the Bank undertakes to open adoption at the request of one of its clients (called open credit) for another person (beneficiary) to ensure documents represent movable goods or prepared for transport
- The importance of documentary credits
1 - a way to reconcile and facilitate transactions between buyer and seller who are in two different countries
2 - guaranteed means of payment in international trade operations
3 - provide letters of credit for each of the credit facilities exporter and importer
- The parties to the documentary credit
It can be said that the letter of credit are among several parties (client, the World Bank, and the beneficiary)
First: the client demanded opening credit (importer - buyer)
Is the client requesting the opening credit of what has been imported (also called open thing of credit) and shall be binding to the Bank the value of accreditation if the conditions are met and shipping documents
Second: Light dependence Bank
Is the bank which gave him the buyer's request to open the appropriation and be committed to the implementation of instructions student issuing fully-reliance and manner specified by the customer
Third: the beneficiary - Source
A person who takes advantage of the open and where reliance is usually the seller in the original contract the source and comply with the conditions agreed upon with the command
- Types of documentary credits
First: documentary credits in terms of the strength of the pledge: You may be next
1) - Accreditation Not deficiency (hyperbolic): a dependence that may not be in any way deficiency or amended without the consent of the stakeholders
2) dependence stainless veto
A dependence which may be irrevocable bank or amended without informing the beneficiary as long as it was prior to the submission documents
Second: documentary credits in terms of implementation: this may be in favor say or unfavorable
1) pro-reliance (Enhanced)
A dependence which includes in addition to the pledge party accreditation Light and stainless irrevocable pledge of another bank (called correspondent bank or broker) is usually in the recipient country
2) the non-pro (unconsolidated)
This appropriation does not include bank pledged Light count toward the beneficiary without promotion or install any without center to another bank to meet the value of credit beneficiary
Third: documentary credits in terms of shape
Thus it can be said that the documentary credit may be convertible or viable retail
1 - rely transferable
Refers to this type of transferable credits in favor of another beneficiary
2 - rely indivisible
It credits that the seller is entitled to ship the goods on several consecutive shipments during the period of accreditation
- The obligations of contractors in the documentary credit
Be selling their relationship is governed by the provisions of the contract of sale and the consequent obligations on both parties obstacle and branded the relationship between the relationship between buyer and seller
- Commanding the bank relationship
The legal basis on which the relationship between the command and the bank is holding the documentary credit, this is a contract that governs the relationship between the parties is the obligations of each party to the other
- First: the Bank's liabilities
1) open Bank of Credit and notified to the beneficiary
2) To receive and examine documents
- Second: the "client"
1 - pay commission and expenses
2 - Payment of credit value
- The relationship between the bank and the beneficiary
The basis of the relationship that arises between the bank and the beneficiary is a documentary letter of credit issued for the benefit of the beneficiary and therefore there would be between the obligations of both parties.
First: the obligations of the beneficiary (seller)
1 - commitment to implement the terms of the documentary credit
2 - Provide documents within the specified period
Second: The Bank's obligations
The Bank is committed to the beneficiary of the opening credit but must here distinguish between whether the documentary credit stainless veto and the documentary credit others Irrevocable
That contract whereby the Bank undertakes to open adoption at the request of one of its clients (called open credit) for another person (beneficiary) to ensure documents represent movable goods or prepared for transport
- The importance of documentary credits
1 - a way to reconcile and facilitate transactions between buyer and seller who are in two different countries
2 - guaranteed means of payment in international trade operations
3 - provide letters of credit for each of the credit facilities exporter and importer - The parties to the documentary credit
It can be said that the letter of credit are among several parties (client, the World Bank, and the beneficiary)
First: the client demanded opening credit (importer - buyer)
Is the client requesting the opening credit of what has been imported (also called open thing of credit) and shall be binding to the Bank the value of accreditation if the conditions are met and shipping documents
Second: Light dependence Bank
Is the bank which gave him the buyer's request to open the appropriation and be committed to the implementation of instructions student issuing fully-reliance and manner specified by the customer
Third: the beneficiary - Source
A person who takes advantage of the open and where reliance is usually the seller in the original contract the source and comply with the conditions agreed upon with the command
- Types of documentary credits
First: documentary credits in terms of the strength of the pledge: You may be next
1) - Accreditation Not deficiency (hyperbolic): a dependence that may not be in any way deficiency or amended without the consent of the stakeholders
2) dependence stainless veto
A dependence which may be irrevocable bank or amended without informing the beneficiary as long as it was prior to the submission documents
Second: documentary credits in terms of implementation: this may be in favor say or unfavorable
1) pro-reliance (Enhanced)
A dependence which includes in addition to the pledge party accreditation Light and stainless irrevocable pledge of another bank (called correspondent bank or broker) is usually in the recipient country
2) the non-pro (unconsolidated)
This appropriation does not include bank pledged Light count toward the beneficiary without promotion or install any without center to another bank to meet the value of credit beneficiary
Third: documentary credits in terms of shape
Thus it can be said that the documentary credit may be convertible or viable retail
1 - rely transferable
Refers to this type of transferable credits in favor of another beneficiary
2 - rely indivisible
It credits that the seller is entitled to ship the goods on several consecutive shipments during the period of accreditation
- The obligations of contractors in the documentary credit
Be selling their relationship is governed by the provisions of the contract of sale and the consequent obligations on both parties obstacle and branded the relationship between the relationship between buyer and seller
- Commanding the bank relationship
The legal basis on which the relationship between the command and the bank is holding the documentary credit, this is a contract that governs the relationship between the parties is the obligations of each party to the other
- First: the Bank's liabilities
1) open Bank of Credit and notified to the beneficiary
2) To receive and examine documents
- Second: the "client"
1 - pay commission and expenses
2 - Payment of credit value
- The relationship between the bank and the beneficiary
The basis of the relationship that arises between the bank and the beneficiary is a documentary letter of credit issued for the benefit of the beneficiary and therefore there would be between the obligations of both parties.
First: the obligations of the beneficiary (seller)
1 - commitment to implement the terms of the documentary credit
2 - Provide documents within the specified period
Second: The Bank's obligations
The Bank is committed to the beneficiary of the opening credit but must here distinguish between whether the documentary credit stainless veto and the documentary credit others Irrevocable
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