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When the letter of credit (LC) applicant and the drawee are the same, it typically indicates that the buyer is also the party responsible for making payments under the LC. This situation can arise in transactions where the buyer seeks financing or guarantees for their purchases. However, it may raise concerns about the independence of the transaction, as the buyer's financial stability directly impacts the LC's effectiveness. It's essential for both parties to clearly understand their roles and obligations to avoid potential disputes.
What else can I help you with?
Is the drawee banker require the acceptance of applicant for payment of sight LC?
no
Calculation of lc confirmation charges?
LC confrmation charges is the charges paid to confirmation bank and born by the applicant, normally a confirmaton bank is bank which give the payment on the presentation of documents by applicant,s bank
Who is the applicant in lc docs?
In LC (Letter of Credit) documents, the applicant is the party that requests the issuance of the letter of credit, typically the buyer or importer of goods. They provide the necessary documentation and information to the bank to facilitate the transaction. The applicant is responsible for ensuring that the terms of the LC are met and may also bear the financial obligation to reimburse the bank upon completion of the transaction.
What are the examples where drawer and drawee are the same?
There really isnÕt a big difference between a drawer and drawee. A drawer is a person that draws out the money and a drawee is the person who will be receiving the money.
Will the applicant bank make payment to the beneficiary bank for non delivery using the after sight LC?
according to a HSBC bank officer in China, he said the applicant must make payment even if the seller does not deliver the goods, for using the after sight 90 days LC....I do npt agree because what is the point of having UCP600/ICC ? if there is no govern body to safeguard the applicant ?
Are LC circuits and tuned circuits same thing?
a "LC circuit at resonance" and tuned circuits are the same
What do you call the Bank on which a check is drawn?
Drawee Bank
What is a drawee?
drawee is a person in whose favor a bill is drawn.
What is drawee?
drawee is a person in whose favor a bill is drawn.
Meaning of drawer and drawee of cheque?
The DRAWER is the individual who issues the cheque, instructing the bank (DRAWEE) to pay the recipient (PAYEE). Drawer and payee can be the same person if it is a self cheque.
Who is the drawee of a check?
The drawee is the bank which will pay the check on behalf of the maker, who wrote the check.
Is scotia bank a drawee?
Yes, Scotiabank can act as a drawee in financial transactions. In this context, a drawee is a bank or financial institution that is responsible for paying a draft or check presented for payment. When a customer writes a check drawn on their Scotiabank account, the bank serves as the drawee by processing the payment when the check is presented.
