Bank-to-Bank Procedures check0 / 1 answered · 0 correct
Check 1
Does “leased SBLC” automatically mean the beneficiary can transfer and monetise it?
“Leased”, “Purchased” and “Owned” Instruments
Translate market labels into actual bank rights and obligations.
Not formal ISP98 classes
ISP98 does not create official product classes called leased SBLC and purchased SBLC. These are market labels used in private transactions.
Reviewed: September 2026Standards and bank policy can change.How MyGreed classifies proceduresOfficial-source directory
Own-account issuance
A customer may obtain issuance using a credit facility, cash collateral, pledged assets or another approved reimbursement arrangement. Paying fees or providing collateral does not mean the customer has bought the face amount as cash.
Third-party/provider structures
A third party may arrange an instrument for another transaction. The key questions are who is applicant, beneficiary, issuer, obligor and financier, and what rights actually exist.
Capabilities depend on wording and law
Transfer, assignment of proceeds, drawing, pledging and financing are separate rights. A marketing word such as “leased” does not automatically grant any of them.
Source / standards noteProcedure terminology can be market-specific. MyGreed distinguishes formal rules/message functions from bank policy and negotiated transaction steps.
Remember thisTranslate “leased/purchased/owned” into applicant, beneficiary, issuer, collateral, drawing, transfer and financing rights.
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