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Letter of Credit (KINDS (Contract of Sale :question: (no :red_cross:…

- - - - If non-payment :red_cross:
        
        w/ Trust Receipt Agreement :check:
        
        w/o trust receipt agreement :red_cross:
        
        ownership not vested to bank
      - procures LC
      - purchase goods
      - stipulated documents
        
        with :check:
        
        reimburse
        
        without :red_cross:
        
        with waiver :check:
        
        reimburse
        
        without waiver :red_cross:
        
        do not reimburse
      - do not reimburse issuing bank :red_cross:
    - - instrument executed
      - deliver drafts and documents of title to bank
      - right to payment
    - - Issues LC
      - receipt of draft and documents of title from seller
        
        pay seller
        
        reimbursement from Buyer
        
        surrender drafts and documents of title
  - - - apparent authenticity of LC
    - - lend credence to lesser known bank
    - - where drafts are drawn
    - - buys LC
      - discounts LC
    - - Obligations taken
        
        Corresponding function
        
        as a Negotiating Bank
        
        liability
        
        negotiation
        
        after negotiation
        
        1 more item...
        
        before negotiation
        
        1 more item...
        
        buy draft
        
        discount draft
        
        as a Notifying Bank
        
        no liability :red_cross:
        
        except notify beneficiary there exists LC :check:
        
        as a Confirming Bank
        
        direct obligation to seller
        
        primary liability
        
        as if it issued LC
        
        like issuing bank
- - - - STANDBY LC
        
        law applicable :question:
        
        Obligations and Contracts
        
        when payable
        
        certification of seller of buyer's non-performance as agreed :check:
    - - COMMERCIAL LC
        
        law applicable :question:
        
        Law on Sales
        
        when payable :question:
        
        Seller presents compliance with Sales agreement
  - - - if allowed by
        
        Bank :check:
        
        seller's bank :check:
        
        seller :check:
  - - - no :red_cross:
        
        2nd guarantee by Seller's bank
        
        additional security
      - yes :check:
  - - - intermediaries
      - others supply seller
  - - - agreed documentation presented and verified
  - - - passed :check:
      - not passed :red_cross:
        
        delay in payment
  - - - prior to shipping
        
        partial payment
      - after shipping
        
        payment of balance
- - - - Reduce risk of non-payment in sale of goods : :lock:
    - - Reduce. risk of non-performance :lock:
- - - - consummation | execution
        
        payment to seller
        
        date of payment
        
        :check: by CORRESPONDENT BANK / any bank in country of creditor (Seller)
        
        :red_cross: not when buyer paid issuing bank
        
        in view of time extension that bank may grant with debtor (Buyer)
        
        Belman vs. Central Bank (1958)
      - seller & buyer
    - - Issuing Bank
    - - Buyer
    - - Seller
    - - Seller
    - - issuing bank
    - - buyer
  - - - in whose favour :question:
        
        definite person (seller)
      - limited amount
        
        if one amount, fixed amount
        
        1 amount, maximum limit
    - - yes
      - no
        
        only Letter of Recommendation
  - - - Yes :check:
        
        as specified
      - No :red_cross:
        
        one year from date of issue
  - - - by International Chamber of Commerce
    - - local laws
        
        if Commercial LC
        
        Law on Sales
        
        if Standby LC
        
        Obligations and Contracts