Hi all, Can anyone guide me the best website to know more about Letter of Credits & Trust Reciepts. Regards, Raoof Abu Dhabi, UAE.
From United Arab Emirates , Dubai
When documents are received by the importer’s bank under LC at sight or DP at sight then the importer is expected to release the payment immediately after which the importer’s bank handover the documents to the importer.
However if the importer wants financing, then the importer may enter in a Trust Receipt Agreement and/or Letter of Hypothecation with its bank. In such case the bank directly meets the importer’s commitment under LC/ DP.
Trust Receipts are similar to Over Draft limits sectioned by the banks in normal course of business. The Trust Receipts Limits are for financing of imports only. The Bank generally monitors the importer’s finances and the credit rating regularly.
Regards,
Ashutosh

From India , Pune
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