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Business Correspondence / 31-39 / block 38 DOCUMENTARY CREDIT.doc
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1.4 The bank advises the seller that the credit is available (I.E. Confirms the credit)

Impex Bank, Montreal, has sent a copy of the form used by the Buyer to open the L/C to General Bank, London, to authorize the opening of the credit. General Bank advises the Seller by the following letter:

GENERAL BANK

100, Farrington Road, London, EC2M 3HG

Our ref. Your ref.

23 July 20__

JBL Netcomps Ltd.

12 a Belgrave London

UK

Dear Sirs

Please find enclosed a copy of instructions from Impex Bank to open an irrevocable letter of credit for 10,000.00 dollars in your favour and valid till 15 September 20__.

You are authorized to draw 60 days’ bill on us against this credit for the amount of your invoice as soon as you provide evidence of shipment.

We shall require the documents listed below to be produced by you before we accept your draft, which should include our discount commission at 5% and charges listed on the attached sheet. It is also stipulated by the buyer that the goods covered by this draft be despatched in one shipment.

Yours faithfully

A.Handkerchief

A.Handkerchief

Manager

Enc: (List of documents)

1.5 The seller sends the documents to the bank

JBL Netcomps Ltd.

12 a Belgrave, London, UK

Our ref. LC/4565/15/10 Your ref.

1 August 20__

General Bank

100 Farrington Road

London EC2M 3HG

Dear Sirs

Referring to your advice of 23 July we now have pleasure in enclosing the shipping documents as called for in your letter.

As required by your client , we have included all charges in our invoice, which amounts to 9,685.00 dollars. Our draft on you for this amount is enclosed, and we ask you to discount it, after acceptance, at the agreed rate. Kindly remit the net amount to our No. 567-001 account at the Eastern Bank, Manchester.

We thank you for your assistance in the matter.

Yours faithfully

G.Simpson

G.Simpson

Manager

Documentary credit part II

2.1 The buyer replies to the seller’s request to prolong the time of delivery and discusses amendments to the l/c

ROSTRADE

Moscow, Mytnaya 17

Our ref. Your ref.

29 September 20__

SCANTRACK

Heidelberglaan 2

Stockholm, Sweden

Dear Sirs,

We acknowledge receipt of your letter of 25 September in which you asked us to prolong the time of delivery under Contract No. 12/BC/147 of 12 July 20__ for two weeks owing to some delays on your subcontractors’ part.

We can agree to your request but want to point out that in this case we will have to prolong L/C No. 14/MB/22/00 for USD 12,000.00 opened by us with Midland Bank Ltd., London. This prolongation means that we will have to bear extra charges as all charges connected with any amendment to this L/C are for our account.

We think the following solution might help us: if you undertake to pay the charges connected with this amendment we will agree to your request and advise our bank to amend the L/C.

We are looking forward to hearing from you soon.

Yours faithfully,

A.Tugay

A.Tugay

Manager