A letter of credit (of lat. credere, believe) is a certificate of a person or a body opposite another.

Dokumenten-Akkreditiv

The Dokumenten-Akkreditiv as instrument of the payment safety device

With the Dokumenten-Akkreditiv (letter of credit, type character OF credit L/C) Kreditinstitut commits itself on behalf the importer to disburse the exporter the purchase price if to these on the basis documents the dispatch of the commodity taken place prove. The letter of credit is an abstract, conditioned promise to pay. This promise to pay is detached by the taken as a basis sales contract ("„abstract promise to pay "“). Kreditinstitut is thus independent of the underlying legal transaction (e.g. Sales contract between exporters and importer) for payment obligates, as soon as the condition of the collecting main of letter of credit-conformal documents is fulfilled ("„conditioned promise to pay "“).

Zahlungsabwicklung with the Dokumenten-Akkreditiv

Basis is first the conclusion of a sales contract with the term of payment Dokumenten-Akkreditiv. The importer (letter of credit plate) places on it with its bank (opening bank) a credit application to open a letter of credit in favor of the exporter (favoured one). The bank of the importer sends the report to the bank of the exporter (advising bank) over the opening of the letter of credit. The report on the opening of the letter of credit means at the same time that the opening bank delivers an abstract, conditioned promise to pay in favor of the exporter. The advising bank divides the exporter then the letter of credit opening with (notification). The exporter ships on it the commodity at the shipping port and receives the appropriate documents, which he submits afterwards with his bank. The advising bank examines the documents due to the available letter of credit. If the documents agree with the conditions mentioned, the advising bank gives a credit note to the exporter over agreed upon Kaufpreis.Die bank of the exporter passes on the documents to the opening bank, which likewise examines the documents. In the case of adherence to the letter of credit conditions an accounting of the document equivalent between the banks takes place. The opening bank passes the documents on on it to the importer and loads its account. The importer can release now against collecting main of the documents the commodity in the port of arrival.

Articles in category "Letter of credit"

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