Co-signed (Signature No. 9847) Signed (Signature ¹ 1027)
Notification of documentary credit
The notification forwarded to Delta Computers by Eastland Bank will have been similar to this one. Note that many banks will have their customers application forms (9.8.2) faxed to them and write the letter of credit on a word processor to suit the customer's requirements.
1. Who will receive the money?
2. Which documents are involved besides the L/C?
3. What special clause is mentioned in the insurance policy?
4. Can the goods be moved from one ship to another?
5. What is the value of the credit?
6. When is the L/C valid till?
7. Who is the issuing bank?
8. Who opened the L/C?
9. Can the exporters ship the consignment in different lots?
10 What does the consignment consist of?
From the exporter to the agent bank
The exporter will now acknowledge the agent bank's letter, and send them the documents they asked for and their draft.
Thank you for your advice of the 15 May. We have now effected shipment to our customers in New Zealand and enclose the shipping documents you asked for and our draft for £23,100 which includes your discount, commission, plus charges.
Will you please accept the draft and remit the proceeds to our account at the Midland Bank, Oxford Street, London Wl.
We are pleased to inform you that your order, No. 8815, has been shipped today on the SS Northern Cross which is due in Wellington in four weeks.
The shipping documents, including bill of lading, invoice, and insurance have been passed to the Eastland Bank, London, and will be forwarded to the New Zealand Bank, Wellington, who will advise you.
As agreed, we have drawn on the Eastland Bank at 60 days for the net amount of £23, 100 which includes the bank's discount commission and charges.
We are sure that you will be pleased with the consignment, and look forward to hearing from you soon.
Senior Shipping Clerk
From the exporter to the importer
Delta Computers notify their customers in New Zealand that the consignment is on its way to them.
1. When will the consignment arrive?
2. What has happened to the shipping documents?
3. How has the bank earned money on the transaction?
4. Who is the agent bank in this transaction?
5. What do the letters SS stand for?
6. What expressions are used to mean: arrive; sent; made out a b/e; notify?
From the importer's bank to the importer
The New Zealand Bank now advises NZ Business Machines that their account has been debited, and that the documents are ready for collection. When he has picked up the documents, Mr Tanner will be able to take delivery of his goods.
NEW ZEALAND BANK
Chairman: Sir Francis Tuckman Directors: L.N. Bowman, P.O. Shearing, L.D Nesterman Takapuna House,
Takapuna Street, Wellington 8
Telex: NewbanNZ 28131
29 May 20—
Mr M. Tanner
N.Z. Business Machines Pty.
100 South Street
Dear Mr Tanner,
In accordance with your instructions of 3 May our agents, Eastland Bank, London, accepted a draft for £23, 100 drawn by Delta Computers Ltd. on presentation of shipping documents for a consignment sent to you on 24 May.
We have debited your account with the amount plus our charges of $280 NZ. The documents are now with us and will be handed to you when you call.