additionally

If the export L/C is not presented directly at the bank using the application, but via an intermediary correspondence bank of the issuing bank, we have a 1st advising bank. The 1st advising bank can be used, if, for example, the issuing bank has an agreement with the 1st advising bank to advise all L/Cs for a specific country via the 1st advising bank.

The applicant instructs the issuing bank to open the L/C . Usually the applicant is not a customer of the bank using the application and can be entered freely.

The reimbursing bank is one of the correspondence banks of the issuing bank. Usually, the issuing bank keeps accounts with the reimbursing bank in foreign currencies. The reimbursing bank can be specified, if the L/C has been advised in a foreign currency (for the issuing bank). At maturity, the bank using the application can reimburse the reimbursing bank for liabilities.

If the bank using the application is not the beneficiary's housebank, or if the beneficiary requests the L/C advice from a bank other than the bank using the application, that bank can be entered here. All correspondence to the beneficiary is sent to that 2nd advising bank. There is no direct contact with the beneficiary.

L/Cs can have the information, at the counter of which bank the L/C can be utilized. This can be the issuing bank, the advising bank or another bank, to which the documents are to be presented for payment, accept or usance payment.

The issuing bank is the bank instructed by the applicant to open the L/C. This enforces an abstract and irrevocable obligation to make payment on the issuing bank when the L/C-compliant documents are presented.

In addition to the issuing bank's irrevocable obligation to pay, there can be another way to secure the L/C by using a confirming bank. This second obligation to pay is used to secure risks that can be at hand in the issuing bank (country risks and/or bank risks) and in the country of the importer (e.g. the risk of a moratorium due to a critical shortage of foreign exchange). An L/C confirmation implies, that the issuing bank explicitly requests a confirmation in the L/C. The confirming bank is liable towards the beneficiary for the breach of the L/C conditions by the issuing bank.

The confirming bank can be the bank using the application or another bank.

The beneficiary is the party in whose favor the L/C was created. It is the exporter of the goods and usually a customer of the bank using the application. As such a customer, the beneficiary is already available in the static data of the bank using the application (or must be entered, if it is a new customer). In addition to the address, also other required information such as the account have to be stored. These information are used in the contract afterwards.

If the issuing bank is not the bank that was instructed by the applicant to open the L/C (e.g. a local bank without foreign trade business), this bank can be specified as a party in the document L/C (Transfer of this bank, correspondence etc.). If the documents are to be sent directly to the applicant's bank, this can be done by checking the relevant checkbox.

If the L/C can be utilized via accept or draft, the drawee of the draft is entered here.

A possible second beneficiary can be entered here.

The 'Account with Bank' is the correspondence bank of one of the parties. It is specified, if the bank using the application does not have a direct account with the party.

The housebank of the beneficiary is entered here.

This party is not a party to the underlying foreign trade transaction.

This is required for internal operations of the application in order to secure the correct booking of liabilities, should the liability party be changed.

Other parties that cannot be entered in any other place can be specified as third parties in the application. Outgoing messages can be sent to these parties. Third parties can be entered on panel “Parties” under “Additional Parties”.