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If you issue a MT760 and you instruct your bank no to send it out of the bank is there a danger to your MT760?
Your funds will get blocked it may get stagnated you will have no control over it call back.
Question makes no sense as YOU don't issue this form, a bank does and it is always issued to be sent to another, external source.
SOUNDS LIKE YOUR PLAYING IN AN ARENA YOU HAVE NO IDEA OF - and why you would possibly post it in a bankruptcy forum makes no sense too. Perhaps you think your going to out smart some creditor or the court?
The SWIFT MT 760 format is one utilized frequently in a wide range
of financial transactions, not simply private placement programs. That said, the use of this procedure raises a number of issues of critical importance. Clients considering utilizing this format, therefore, should exercise a measure of caution and restraint. Let's examine some of these issues in turn...
Analysis:
1) Nature of SWIFT A SWIFT MT 760 is a bank-responsible guarantee issued by the sender bank, upon instructions of its account holder, in favour of a particular transaction or counter-party. Since banks never put their own money at risk, the clients funds are "blocked" by the bank, and held by the bank as security (collateral) for the issuance of the SWIFT. The SWIFT MT 760, therefore, is more than just an inter-bank message - it is a full-blown cash-backed negotiable instrument!
2) Text The SWIFT MT 760 comes in a variety of shapes and sizes, depending on the precise text employed by the sending bank in the field specifications, particularly Field 77C. When offered a SWIFT MT 760 procedure by a Trade Group, clients should request the complete text of the SWIFT MT 760 message so there can be no "surprises" later on. And don't settle for a watered-down "broker" version of the text; the precise language of the field specifications is of critical importance.
3) Availability U.S. Banks (and some banks in the Far East) have shown a general unwillingness to issue a SWIFT MT 760. Before you can commit to any proposed transaction, therefore, you will need to first confirm that your bank will take instructions to issue the SWIFT message. And if your bank won't cooperate, you may wish to move your funds out of the bank to a more accommodating financial institution!
4) Cost Keep in mind that the bank charges for issuance of a SWIFT MT 760 are not insubstantial, it's normally 0.05 % of the amount.
What else can I help you with?
Can your bank issue an MT760?
Yes, a bank can issue an MT760, which is a type of SWIFT message used to provide a guarantee or standby letter of credit. This message is commonly used in international trade to facilitate transactions and assure payment. However, the issuance of an MT760 is contingent upon the bank's policies and the client's creditworthiness. It is important for the client to discuss their specific needs with their bank to ensure proper processing.
What is MT760 SBLC?
MT760 is a Stand By Letter of Credit or SBLC. This form is the United States version of the Bank Guarantee.
Do Indian banks issue an MT799 and MT760?
Yes, Indian banks do issue MT799 and MT760 messages as part of their operations in international trade and finance. An MT799 is a free-format message used for communication between banks, often for confirming the existence of funds or guarantees, while an MT760 is a message used to issue a bank guarantee or standby letter of credit. These messages are part of the SWIFT network, facilitating secure and standardized communication in cross-border transactions.
How safe is mt760?
How safe is mt760 or are the mt760 is safe ?The MT760 is backed by the assets of issuing bank - not by any lawyer, financial broker or investor. if the blocked funds exceed the value of the bank, this may go bancrupt should the blocked funds be called on, unless they have used other banks (which is the usual case) to confirm the guarantee.Failure to comply will make the bank loose it status on the Swift banking network.
Is Indian bank accept mt760?
Yes, Indian banks typically accept MT760 messages, which are used for issuing bank guarantees and standby letters of credit in international trade. However, the acceptance and processing may vary depending on the specific bank and its policies. It's advisable to directly contact your bank for details on their procedures and requirements related to MT760 transactions.
How much time does it take to receive a Swift MT760 bank to bank?
5 banking days
How can take mt799 and mt760 for UK bank draft in Indians bank?
it all depends on Bank agreement and on BG or SBLC conditions.
How do you revoke an MT760?
To revoke an MT760, the issuer must send a cancellation message to the receiving bank, referencing the original MT760 message. This revocation should follow the guidelines set by the SWIFT network and the terms of the underlying transaction. The cancellation must be acknowledged by the receiving bank to ensure that the MT760 is officially revoked. It’s advisable to communicate with relevant parties to confirm the revocation process and ensure all documentation is properly managed.
How can the beneficiary of a mt760 get payment?
The beneficiary of an MT760 can receive payment through a bank guarantee or standby letter of credit issued by the bank of the applicant. Once the conditions stipulated in the MT760 are met, such as the fulfillment of contractual obligations or presentation of required documents, the beneficiary can present these documents to their own bank for payment. The payment is then processed through the banking network, ensuring that the funds are released as per the terms of the guarantee.
How much does a SWIFT MT760 and a SWIFT MT799 cost?
How much a SWIFT MT760 and a SWIFT MT799 cost will depend on the asset that is used as the base. The SWIFT MT799 is a free message that is issued by the bank.
Will most US banks accept MT760 from major foreign banks?
MT760 is a transactions authorizing the bank to hold funds associated with a project or to issue a letter of credit. MT760 is a risky undertaking and that the business does not actually see the funds aside from a form agreement, report, or through financial activities in which one may be personally involved. It is also considered an inconvenience in which funds frozen and a penalty is issued if funds are taken before grace period. Major foreign banks can take advantage of this service if only they are on the Swift code channel.
What happens after a MT760 clear?
After a MT760 clear, which signifies that a bank guarantee or similar financial instrument has been successfully issued and confirmed, the beneficiary can access the funds or collateral indicated in the transaction. The issuing bank will hold the amount as collateral until the conditions of the underlying transaction are fulfilled. This process typically enhances trust and security in international trade or financing arrangements. Following the MT760 clear, parties can proceed with their contractual obligations based on the assurance provided by the guarantee.
