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What is a Red clause LC?

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Question added by Amila Cooray , Junior Executive II , SAMPATH BANK PLC
Date Posted: 2014/09/28
Shahbaz aslam
by Shahbaz aslam , Planning&Budget officer , Raasalam International

Under a ‘red clause’ credit the seller is able to obtain an advance from the correspondent advising bank prior to the presentation of the prescribed documents by the seller.although the advising bank paid out advance but it is the issuing bank that assumes the liability

 

 

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