The document discusses letters of credit (LC), which are written undertakings by an issuing bank to pay a beneficiary-seller at the request of an applicant-buyer against stipulated documents and in compliance with terms and conditions within a specified time limit. LCs are governed by the International Chamber of Commerce's Uniform Customs and Practice for Documentary Credits and can be issued locally or internationally under various Islamic financing contracts like Murabahah or Wakalah. They provide a secure method of payment in international trade.
The document discusses letters of credit (LC), which are written undertakings by an issuing bank to pay a beneficiary-seller at the request of an applicant-buyer against stipulated documents and in compliance with terms and conditions within a specified time limit. LCs are governed by the International Chamber of Commerce's Uniform Customs and Practice for Documentary Credits and can be issued locally or internationally under various Islamic financing contracts like Murabahah or Wakalah. They provide a secure method of payment in international trade.
Copyright:
Attribution Non-Commercial (BY-NC)
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The document discusses letters of credit (LC), which are written undertakings by an issuing bank to pay a beneficiary-seller at the request of an applicant-buyer against stipulated documents and in compliance with terms and conditions within a specified time limit. LCs are governed by the International Chamber of Commerce's Uniform Customs and Practice for Documentary Credits and can be issued locally or internationally under various Islamic financing contracts like Murabahah or Wakalah. They provide a secure method of payment in international trade.
Copyright:
Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online from Scribd
2010731509
| ° | tt s of c it us in int national tansactions a gov n by th Int national Chamb of Comm c Unifom Customs an Pactic fo Docum ntay C its. ° Contactual ag m nt b tw n a bank, known as th issuing bank, on b half of on of its custom s, authoizing anoth bank, known as th avising o confiming bank, to mak paym nt to th b n ficiay. ° Th issuing bank, on th qu st of its custom , op ns th l tt of c it. ° Th issuing bank mak s a commitm nt to hono awings ma un th c it. ° Th b n ficiay is nomally th povi of goos ano s vic s. ° Th issuing bank plac s th bank's custom as th pay . ÿ
° paym nt un taking giv n by a bank (issuing bank) ° On b half of a buy (applicant) ° To pay a s ll (b n ficiay) fo a giv n amount of mon y ° On p s ntation of sp cifi ocum nts p s nting th supply of goos ° Within sp cifi tim limits ° Docum nts must confom to t ms an conitions s t out in th l tt of c it ° Docum nts to b p s nt at a sp cifi plac @ ° ÿntitl to paym nt as long as h can povi th ocum ntay vi nc qui by th l tt of c it. ° Th l tt of c it is a istinct an s paat tansaction fom th contact on which it is bas . ° ll pati s al in ocum nts an not in goos. ° Th issuing bank is not liabl fo p fomanc of th un lying contact b tw n th custom an b n ficiay. ° th issuing bank͛s obligation to th buy , is to amin all ocum nts to insu that th y m t all th t ms an conitions of th c it. ° Upon qu sting man fo paym nt th b n ficiay waants that all conitions of th ag m nt hav b n compli with. ° If th b n ficiay (s ll ) confoms to th l tt of c it, th s ll must b pai by th bank. ° i@ Th issuing bank's liability to pay an to b imbus fom its custom b com s absolut upon th compl tion of th t ms an conitions of th l tt of c it. °
@ Usually a fo ign co spon nt bank of th issuing bank will avis th b n ficiay. G n ally, th b n ficiay woul want to us a local bank to insu that th l tt of c it is vali. ° @ Th co spon nt bank may confim th l tt of c it fo th b n ficiay. t th qu st of th issuing bank, th co spon nt obligat s its lf to insu paym nt un th l tt of c it. Th confiming bank woul not confim th c it until it valuat th county an bank wh th l tt of c it oiginat s. Th confiming bank is usually th avising bank. |
° · | tt s of c it a usually n gotiabl . ° Î | tt s of c it may b ith vocabl o i vocabl . vocabl l tt of c it may b vok o moifi fo any ason, at any tim by th issuing bank without notification. ° £
Th b n ficiay has th ight to tansf o assign th ight to aw, un a c it only wh n th c it stat s that it is tansf abl o assignabl . °
£ ll l tt s of c it qui th b n ficiay to p s nt a aft an sp cifi ocum nts in o to c iv paym nt.
° i Th billing fo th goos an s vic s. ° @
ocum nt vi ncing th c ipt of goos fo shipm nt an issu by a f ight cai ngag in th busin ss of fowaing o tanspoting goos. ° D £ waanty giv n by a s ll to a buy of goos that stat s that th titl b ing conv y is goo an that th tansf is ightful. ° i
Sp cifically in mnifi s th puchas against a c tain stat cicumstanc . In mnification is g n ally us to guaanty that shipping ocum nts will b povi in goo o wh n availabl .
° | tt of C it has pi pio to p s ntation of aft. ° Bill of |aing vi nc s liv y pio to o aft th at ang stat in th c it. ° Stal at ocum nts. ° Chang s inclu in th invoic not authoiz in th c it. ° Inconsist nt sciption of goos. ° Insuanc ocum nt os. ° Invoic amount not qual to aft amount. ° Pots of loaing an stination not as sp cifi in th c it. ° D sciption of m chanis is not as stat in c it. ° ocum nt qui by th c it is not p s nt . ° Docum nts a inconsist nt as to g n al infomation such as volum , quality, tc. ° Nam s of ocum nts not act as scib in th c it. B n ficiay infomation must b act. ° Invoic o stat m nt is not sign as stipulat in th l tt of c it. i
|
° Can b issu ith to a
° Gov n by UCP 500 which is fomulat by th i
, acc pt an cognis wolwi ° ü
fo th |C is availabl if qui ° lso availabl un i
as MuabahahWakalah | tt of C it-i ° Back by ov *
, a n twok of ov
an mo than
i
|
It is a ocum nt witt n un taking giv n by th
issuing bank to a b n ficiays ll at th qu st of th applicantbuy to pay a stat sum of mon y against stipulat ocum nts an in complianc with th t ms an conitions within a p scib tim limit. It is on of th m thos of paym nt in int national ta . Th |C-i may b issu un th contact of Wakalah o Muabahah. °
Can b issu ith to a local o fo ign suppli Gov n by UCP 600 which is fomulat by th Int national Chamb of Comm c , acc pt an cogniz wolwi Main Takaful fo th |C-i is availabl if qui