Focus 1. Letter 1 (establishing a documentary credit)

LETTER 1 (Establishing a documentary credit)

June 8, 20...

New Zealand Bank

Takapuna Street

Wellington 9

Dear Sirs

Please establish an irrevocable documentary credit for 25000 pounds in favour of Delta Computers Ltd., England. I have enclosed your application form with all the relevant details completed.

We will appreciate it if you inform us when you have made arrangements with your agents in London.

Yours faithfully

G. Turner

N.Z. Business Machines

Encl. Application form for documentary credit

LETTER 2 (Informing of details on LC)

June 15, 20...

Delta Computers Ltd.

Bradfield Road

Northamptonshire NN8 4HB

United Kingdom

Dear Mr James

Thank you for replying to our enquiry of May 28, 20... and letting us know that C2000 computers are available.

The terms you quoted are quite satisfactory, and you will find our order enclosed. We have instructed our bank, New Zealand Bank, to open an irrevocable and confirmed letter of credit for 25,000 pounds in your favour. This should cover c.i.f. shipment and bank charges, and the credit is valid until June 20...

You will receive confirmation from our bank’s agents Eastland Bank Ltd., London, and you may draw on them at 60 days for the amount of the invoice. Please enclose the following documents, when submitting your draft:

§ Bill of Lading

§ Invoice c.i.f. Wellington

§ Insurance Policy

Please inform us as soon as you have arranged shipment.

Yours sincerely

G. Turner

N.Z. Business Machines

Encl: Order

LETTER 3 (Instructions on drawing drafts against credit)

June 20, 20...

Delta Computers Ltd.

Bradfield Road

Northamptonshire NN8 4HB

Dear Sir,

Please find enclosed a copy of the notification we received yesterday from the New Zealand Bank, Wellington, to open an irrevocable letter of credit in your favour for 25,000 pounds which will be available until June 28, 20....

You may draw on us at 60 days against the credit as soon as you provide evidence of shipment. Please enclose with the draft the following documents:

§ Bill of Lading

§ Commercial invoice c.i.f. Wellington

§ Insurance certificate

Your draft should include our discount commission which is five per cent, and our charges listed on the attached sheet.

Yours faithfully,

S. Merroway

Documentary Credits Department

LETTER 4 (Forwarding shipping documents and draft after shipment)

June 25, 20...

Mr S. Merroway

Eastland Bank Ltd.

401 Aldgate, London EC1

Dear Mr Merroway

Thank you for your advice of June 20, 20... We have now effected shipment to our customers in New Zealand and enclose the shipping documents you asked for and our draft for 26,250 pounds at 60 d/s which includes your discount, commission and charges.

Please accept the draft and remit the proceeds to our account at the Midland Bank, Oxford Street, London W1.

Yours sincerely

R. Brown

Senior Shipping Clerk

LETTER 5 (Debiting account)

July 1, 20...

Mr Turner

N.Z. Business Machines

100 South Street

Wellington

Dear Mr Turner

In accordance with your instructions of June 15, 20... our agents, Eastland Bank, London, accepted a draft for 26,250 pounds drawn by Delta Computers Ltd. on presentation of shipping documents for a consignment sent to you on June 10, 20...

We have debited your account with the amount plus our charges of NZ$300. The documents are now with us and will be handed to you when you visit us.

Yours sincerely

O. Dobbin

Manager

LETTER 6 (Credit letter)

Issuing Bank Limited International Division

23, High Street

London C.W. 25

Date of Expiry

Date of issue

This credit is sent to the advising bank by airmail.

Applicant Beneficiary

Agropharm Limited Medexport Moscow

Advising Bank Amount: USD 40,000 CIF

Moscow (US dollars - forty thousand only)

Narodny Bank LTD

REF. NO....

CIF

Partial Shipment allowed

Transhipment allowed

Shipment from Russian Sea Port to Hull Not later than...

Dear Sirs

We hereby issue in your favour this irrevocable Documentary Credit as per details stated above, available by negotiation of your drafts at sight drawn on the applicant (...) for full invoice value of shipment purporting to be 20,000 kg of... accompanied by the following signed documents...