SCM 371 Lecture Notes - Lecture 12: Alcoholic Drink, Export Administration Regulations, International Traffic In Arms Regulations
Document Summary
Do(cid:272)u(cid:373)e(cid:374)t issued/(cid:449)ritte(cid:374) (cid:271)y the buyer"s (cid:271)a(cid:374)k a(cid:374)d addressed to the eller. Tates that the bank will release payment to the seller after the bank is supplied with documents. Exactly in accordance with the terms specified in the document multiple banks may be involved: shipping dates, insurance, quality levels, any special conditions, quantities - partial or full shipments. Provides funds for bank to hold until transaction completed. Seller beneficiary of the funds once goods/services have been shipped, inspected, and have met all loc requirements. It is possible that one bank could act as more than one of the following. Credit utilize all of these bank parties, though. Issuing bank issues loc (cid:271)ased o(cid:374) (cid:862)(cid:271)uyer"s(cid:863) de(cid:373)a(cid:374)ds. Paying bank responsible for paying seller when appropriate. Advising bank verifies that issuing and/or paying bank are reputable. Not responsible for payment in case of default, though. Confirming bank in case of default by paying or issuing bank, this bank will pay/reimburse appropriate parties.
