What Is an Internal Claim?

Reimbursing Bank refers to a third country bank that the agent of the issuing bank accepts the commission from the issuing bank of the letter of credit and repays the negotiating bank's advance on behalf of the issuing bank. The reimbursing bank appears on the letter of credit of the importer or the drawee of the issuing bank, and repays the payment on behalf of the issuing bank with the remittance certificate matching the negotiating bank's certificate. If the issuing bank receives the document, if it finds a discrepancy, it should recover the payment from the negotiating bank, and cannot recourse to the reimbursing bank, because the reimbursing bank has no review of the document and is not responsible for the discrepancy. ^[1]

Paying bank

The reason for the reimbursement bank is:

Different from confirming bank

Reimbursement bank refers to accepting the instruction or authorization of the issuing bank to pay on behalf of the issuing bank

Article 2G: "Repayment commitment" means an independent and irrevocable commitment issued by the reimbursing bank.

Article 10 "Bill of Claims" Paragraph B

Article 17 "interest claim / loss of value" due to

The reimbursing bank's expenses shall be borne by the issuing bank; however, if the expenses are borne by other parties, it is the responsibility of the issuing bank to indicate in the original L / C and the reimbursement authorization. If the reimbursing bank's expenses are to be borne by another party, such fees shall be charged to the claiming bank upon payment of the amount under the credit. If the amount under the L / C is not withdrawn, the issuing bank is still obliged to bear the expenses of the reimbursing bank.