Correspondent & Reimbursement check0 / 1 answered · 0 correct
Check 1
Does the reimbursing bank necessarily re-check the full commercial document set?
How LC Reimbursement Works
Issuing bank, reimbursing bank and claiming bank in one simple flow.
Reimbursement authorization
An issuing bank may authorize a reimbursing bank to honour reimbursement claims under a documentary credit arrangement.
Claiming bank
A nominated/claiming bank that has acted under the credit may claim reimbursement according to the authorization and applicable rules/instructions.
Separate from beneficiary documents
The reimbursing bank may not examine the full beneficiary presentation in the same way as the issuing bank. Its role is governed by the reimbursement authorization and relevant rules.
Timing and funds
Availability of cover, value date, authentication and claim details can affect when reimbursement settles.
Standards / source note: Correspondent and reimbursement arrangements depend on bank agreements, current SWIFT standards and, where incorporated, ICC rules such as URR 725.
Remember thisReimbursement is the bank-to-bank funding leg; it is not the same thing as the beneficiary’s document examination.
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