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Recourse
The right to claim a refund from another party which has handled a bill at an earlier stage.
Red Clause Credit
A credit with a clause which authorises the advising bank to make an advance payment to the beneficiary - see special DCs.
Reimbursing Bank
The bank nominated by the DC issuing bank that will pay the value of the DC to the negotiating/paying bank.
Remitting Bank
The exporter's bank in collection transactions, which remits the bill to the collecting bank.
The exporter's bank in DC transactions, which dispatches the documents to the issuing bank.
Retirement
The act of paying or settling an outstanding bill or import loan; i.e. payment by the importer to the Bank.
Revocable Credit
One that may be amended or cancelled without notice to the beneficiary.
Revolving Credit
A credit automatically reinstated after each drawing or upon receipt of authorisation from DC issuing bank, with limits as to the duration of the facility and as to the (cumulative or non-cumulative) amount involved for each drawing - see Special DCs.
Schedule
The Remitting/Negotiating Bank's letter covering a bill sent to the Collecting/Issuing Bank, which lists the documents attached and gives collection and/or payment instructions.
Self-Liquidating
A transaction is said to be self-liquidating when there is a known source of funds available for its settlement on due date.
Shipment Date
The date inserted on the bills of lading evidencing goods received on board is regarded for documentary credit purposes as being the date of shipment.
Shipper
See consignor
Shipping Guarantee (SG)
Guarantees of this nature are required to enable customers to obtain goods before the arrival of the documents of title, and are issued to the shipping companies by the Bank against an undertaking to forward the bills of lading when they are received. The Bank normally take 100% cash margin against the value of the goods if the customer does not have T/R facility.
Shipping Terms
See Incoterms
Sight
A bill payable at sight is payable on presentation to the drawee i.e. on demand.
Snags
Irregular bills; import and export.
Standby Credit
This may be established as security for facilities granted at another branch or bank, usually to a subsidiary of the DC applicant. - see Special DCs.
Status Report
Produced by a bank's TCI department or a credit information bureau, giving details of the creditworthiness and business background of traders and manufacturers.
Substitution
The act whereby the prime beneficiary substitutes his own documents i.e. invoices and drafts, in back-to-back and transferable credit operations prior to negotiation of the master credits.
Tenor
Term or Period of credit granted by the drawer. See Usance Bill.
Tracer
See Chaser.
Trade and Credit Information (TCI)
A bank department that prepares and distributes status reports on its own customers, and maintains records of traders and manufacturers with whom its customers deal.
Transferable Credit
Permits the beneficiary to transfer all or some of the rights and obligations under the credit to a second beneficiary or beneficiaries - see Special DCs.
Transferee
A party (2nd beneficiary) to whom a transferable credit is transferred in whole or in part.
Transferor
A party (1st beneficiary) at whose request a transferable credit is transferred to a second beneficiary in whole or in part.
Uniform Customs and Practice for DCs
See ICC 500
Uniform Rules for Collections
See ICC 522
Usance Bill
A Bill of Exchange which allows the drawee a term or period of credit (this period is also called usance).
The term is usually stated in days (e.g. 30 days) or months and starts either from the date of the bill (e.g. 30 days date) or from the date of bill of lading, or from sight by the drawee (e.g. 30 days sight) which in practice means from the date of acceptance.
An essential feature of acceptance credits and D/A collections.
Waive
To relinquish a right: used in collections with BC charges and/or interest to be collected from the drawee: these can be waived in certain circumstances as set out in ICC 522.
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