What is field 42C in LC?

Field 42C: Drafts at is a field in MT 700 swift message type that is used to to specify the tenor of drafts to be drawn under the documentary credit. This is an optional field. This field specifies the tenor of drafts to be drawn under the documentary credit.

What is MT700 in banking?

MT700 is used to indicate the terms and conditions of a commercial documentary credit or a standby letter of credit which has been originated by the Sender (issuing bank). This message is sent by the issuing bank to the advising bank.

What is a MT700 documentary letter of credit?

MT 700 Issue of a Documentary Credit This message is sent by the issuing bank to the advising bank. It is used to indicate the terms and conditions of a documentary credit that has been originated by the Sender (issuing bank).

What is field 58a in MT700?

There is a new Field 58a “Requested Confirmation Party”. As indicated earlier, this field is to be completed when the code CONFIRM or MAY ADD is inserted in field 49 AND field 57a ‘Second Advising Bank’ is completed. If field 57a is not completed, the instruction in field 49 will apply to the receiving bank.

What is field 41a in LC?

Field 41a: Available With … By … is a field in MT 700 swift message type that is used to identify the bank with which the credit is available (the place for presentation) and indicates of how the credit is available.

What is field in LC?

Documentary Credit (D/C) is also called Letter of Credit (L/C). If filed 31C has not been listed, then the Issue Date of the L/C is the date of sending SWIFT message. Field:31D Date And Place Of Expiry (Mandatory) The date the letter of credit expires.

What is a MT700?

MT 700 is a special swift message type that is used by issuing banks when issuing a letter of credit. An issuing bank sends the terms and conditions of the documentary credit with a MT 700 Issue of a Documentary Credit swift message type. MT 700 message is sent by the issuing bank to the advising bank.

What is the difference between SBLC and documentary LC?

While LC is used as a primary method of payment, SBLC is used when there is buyer’s non-performance during the sale. Benefit of using LC & SBLC is that, the buyer gets an assurance of receiving his product or merchandise on time, and the seller gets assurance of being paid on time on completion of the job.

How does a documentary letter of credit work?

A fully funded documentary letter of credit will provide assurance that cash for the value necessary in payment has been moved to a separate account for payment when required. In an unfunded letter of credit, the bank may pay the full amount or a partial amount depending on the funds the buyer has available.

What is date and place of expiry in LC?

Field 31D: Date and Place of Expiry is a field in MT 700 swift message that is used to indicate the date and place of expiry of the letter of credit. This field specifies the latest date for presentation under the documentary credit and the place where documents may be presented.

What is field 44F in LC?

What is Field 44F: Port of Discharge/Airport of Destination? Field 44F: Port of Discharge/Airport of Destination is a field in MT 700 swift message type that is used to specify the port of discharge or airport of destination to be indicated on the transport document. This is an optional field.

What is the field 42C in MT 700?

What does field 42C mean in Swift 700?

This field specifies the tenor of drafts to be drawn under the documentary credit, if available. What is Field 42C: Drafts at? Field 42C: Drafts at is a field in MT 700 swift message type that is used to to specify the tenor of drafts to be drawn under the documentary credit.

What does the field MT700 mean in Swift?

It is used to indicate the terms and conditions of a documentary credit which has been originated by the Sender (issuing bank). This field specifies the number of this message in the series of messages sent for a documentary credit, and the total number of messages in the series.

When to use field 42c for a draft?

The calculation of tenor and maturity dates, as shown above, would also apply to credits designated as being available by deferred payment, i.e., where there is no requirement for a draft to be presented by the beneficiary. Field Field 42C: Drafts at …