LC / SBLC Process & Procedures Trade Finance

Letter of Credit Application – Available with Which Bank

What should appear in the bank field?

The bank to whom the beneficiary may present its documents for payment, deferred payment, acceptance or negotiation (when other than the issuing bank, this bank is referred to as the nominated bank). When the nominated bank is the advising bank or any bank, the beneficiary also has the choice of presenting its documents directly to the issuing bank.

When this field indicates that the documentary credit is available with any bank, the beneficiary may present its documents to any bank. The scope of the term ‘any bank’ will be narrowed by the inclusion of the name of a city or country as part of the expiry date details referred to earlier in this module, in which case it is any bank in the named city or country that may pay, accept a draft, incur a deferred payment undertaking or negotiate.  

Wherever possible, situations should be avoided where the place of the bank with which the documentary credit is to be available is different from the place of expiry. 

Main UCP considerations

Sub-article 6 (a) indicates that a documentary credit must state the bank with which it is available or whether it is available with any bank.

Sub-article 6 (b) requires that each documentary credit indicate whether it is available by payment, deferred payment, acceptance or negotiation.