2.5.2 Business Scenario
IBCL - Incoming Sight Bills under LC Payment (Advance by Loan)
Scenario 1 - Credit Compliant Doc Submission
Issuing bank received MT754 and Documents from Negotiating bank, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and informed to importer.
On Maturity if the importer requests for Loan, Issuing bank can provide Loan to the customer.
During Liquidation Issuing bank will create a new loan contract and credit the Nostro for bill amount. MT756 has to be generated to the Negotiating bank.
During Liquidation of Loan Issuing bank will debit the customer account for loan amount and interest and credit the respective Loan Asset and income GLs.
IUIB - Incoming Usance Bills under LC Acceptance (Advance by Loan)
Scenario 1 - Credit Compliant Doc Submission
Issuing bank received MT754 and Documents from Negotiating bank, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and informed to importer.
On Maturity if the importer requests for Loan, Issuing bank can provide Loan to the customer.
During Liquidation Issuing bank will create a new loan contract and credit the Nostro for bill amount. MT756 has to be generated to the Negotiating bank.
During Liquidation of Loan Issuing bank will debit the customer account for loan amount and interest and credit the respective Loan Asset and income GLs.
IUBM - Incoming Clean Multi Tenor Bills under LC on Acceptance
Issuing bank received MT754 and Documents from Negotiating bank, and scrutinizes the docs. If the docs are Credit Compliant, Mark Bills as Credit Compliant and informed to importer.
On Maturity if the importer pays the exporter for all the tenors
Parent topic: Product Code – IBCL/IUIB/IUBM