London will once again play host to GTR Africa Trade & Infrastructure Finance Conference on October 5-6 2016, bringing together high-level participants from across the trade finance community for topical…read more →
What is the procedure by the beneficiary banks (not a negotiating bank) if there is a restricted Letter of Credit (LC)?
The bank could tell thebeneficiaryto present documents to the negotiating bank along with instructions to pay their own bank. Documents should then be presented to the negotiating bank requesting acceptance (or payment) as outlined by the LC. This would save costs and time. The reason that this will save costs is that in the event that both banks handle the documents then it will mean that commission is charged to pass them on to the negotiating bank.