Mr Old Man Payment Q&A CAN MT 799 BE USED TO ISSUE A SBLC? By Mr Old Man Posted on December 3, 2024 2 min read 0 0 338 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, Good Day. We have received MT 799 under field 20 & field 21 indicated the same reference number. Followed by field 79 only and indicated irrevocable standby letter of credit no…… for USD1,000,000.00. We hereby authorize you to draw on Bank of Singapore …. upon your demand by authenticated swift…this SBLC expire on 1/3/2026. Charges on bene’s account… SBLC subject to ISP 98. SBLC normally issued under MT 760 to advising bank to advise said LC to customer. May I know why above SBLC is issued in MT799 and the purpose? Can it be issued in MT 760? Thank you. Xona Woo Sent from my iPhone —- ANSWER Hi Xona, MT 760 is specially designed for a bank to issue or advise of the issue of an undertaking (SBLC or guarantee) to the beneficiary, whereas MT 799 is used by banks to send or receive information for which another message type is not applicable. In SBLC transactions, MT 799 would be used by the issuing bank as pre-advice that the bank is prepared to issue an SBLC, not as a notice of issue of an SBLC. To avoid the risk of ambiguity of MT 799, you should request the SBLC to be issued using MT 760. Best regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?