The issuing bank issues a notice of arrival of documents and payment to the applicant
After receiving the negotiation documents from the negotiating bank, the issuing bank shall issue a notice of arrival of documents and payment to the applicant, requiring it to pay the issuing bank in time to redeem the documents in accordance with the agreement in the application form.
2. The applicant pays the issuing bank to redeem the documents
After receiving the notice from the issuing bank, the applicant shall promptly go to the issuing bank to inspect and accept the documents. If the documents are qualified, the applicant shall not unreasonably refuse to pay, otherwise it shall compensate the issuing bank for the loss of advance payment. If the documents are unqualified, the applicant has the right to refuse to pay and recover the deposit when the letter of credit expires. In practice, the applicant may also waive the discrepancies and authorize the issuing bank to make external payments, but care should be taken not to exceed the time limit for the issuing bank to review the documents.
Strictly speaking, the above Items 9 and 10 are no longer part of the business specified in the letter of credit application, because the letter of credit is an arrangement between the issuing bank and the beneficiary. When the issuing bank makes the final payment, the letter of credit business is over. However, for the sake of completeness, Items 9 and 10 are still included in the letter of credit business procedures.