International Business
- M/S Auto India, Pune, India
Beneficiary - M/S General Motors, Detroit, USA.
Issuing Bank - Global Bank, Pune, India
Advising Bank - The American Bank, New York
Negotiating Bank - The American Bank, New York
Reimbursing Bank - International Bank, New York
Availability - Negotiable at sight
Expiry - At the counters of The American Bank, New York
Amount - USD 100,000
Merchandise - Car engine parts
Quantity and price - 50 units @ USD 2000 per unit
Circumstances
Issuing Bank
Global Bank, Pune issued its irrevocable negotiable credit through its head office in Pune since Global Bank co-ordinated all its accounting and communication functions at its head office. The
Bank’s head office transmitted the credit through Swift network as instructed by its Pune branch to General Motors, Detroit, through The American Bank, New
York.
Advising Bank
The American Bank, New York advised the credit to General Motors, Detroit on receipt of the swift transmission.
Credit
Along with other conditions, the credit clearly stated that the negotiating bank was to forward the documents directly to Global Bank’s head office at Pune.
Beneficiary
After export of the consignment, General Motors, Detroit presented the documents under the credit to The American bank, New York.
Negotiating Bank
The American Bank, New York, examined the documents presented by General Motors and determined that they were in compliance with the terms and conditions of the credit. The
American bank negotiated the documents and forwarded the documents, as per the credit terms, to the HO of Global Bank in Pune and claimed reimbursement from International bank, New York.
Reimbursing Bank
International Bank, New York honoured the reimbursement claim by crediting the current account of the American Bank, New York and debiting the account of Global Bank, Pune, in its books. Issuing Bank Head Office
Global Bank’s Head Office, at Pune, received the documents and after internal
registration
Beneficiary - M/S General Motors, Detroit, USA.
Issuing Bank - Global Bank, Pune, India
Advising Bank - The American Bank, New York
Negotiating Bank - The American Bank, New York
Reimbursing Bank - International Bank, New York
Availability - Negotiable at sight
Expiry - At the counters of The American Bank, New York
Amount - USD 100,000
Merchandise - Car engine parts
Quantity and price - 50 units @ USD 2000 per unit
Circumstances
Issuing Bank
Global Bank, Pune issued its irrevocable negotiable credit through its head office in Pune since Global Bank co-ordinated all its accounting and communication functions at its head office. The
Bank’s head office transmitted the credit through Swift network as instructed by its Pune branch to General Motors, Detroit, through The American Bank, New
York.
Advising Bank
The American Bank, New York advised the credit to General Motors, Detroit on receipt of the swift transmission.
Credit
Along with other conditions, the credit clearly stated that the negotiating bank was to forward the documents directly to Global Bank’s head office at Pune.
Beneficiary
After export of the consignment, General Motors, Detroit presented the documents under the credit to The American bank, New York.
Negotiating Bank
The American Bank, New York, examined the documents presented by General Motors and determined that they were in compliance with the terms and conditions of the credit. The
American bank negotiated the documents and forwarded the documents, as per the credit terms, to the HO of Global Bank in Pune and claimed reimbursement from International bank, New York.
Reimbursing Bank
International Bank, New York honoured the reimbursement claim by crediting the current account of the American Bank, New York and debiting the account of Global Bank, Pune, in its books. Issuing Bank Head Office
Global Bank’s Head Office, at Pune, received the documents and after internal
registration