In the Letter of Credit arrangements, the reimbursing bank is the bank that serves as a source of funds payment to the beneficiary. Upon presentation of credit conforming documents nominated bank would need to pay the beneficiary and claim reimbursement from reimbursing bank or issuing bank.
The issuing bank makes an irrevocable reimbursement authorization to the reimbursing bank that, designates the nominated bank as a claiming bank and authorizes the reimbursing bank to honor a reimbursement claim from the claiming bank.
When the documents are considered compliant by the nominated/confirming bank/transferring Bank, the Bank will then present a reimbursement claim to the reimbursing bank to obtain Payment. The Reimbursing banks have a reasonable time, normally not to exceed three banking days following the day of receipt of the reimbursement claim, to process such claims.
The Paying/Negotiating bank will send a reimbursement claim[MT742 Swift message type] to the bank authorized[Reimbursing Bank] to reimburse the Sender for its payments/negotiations. This Reimbursement Claim is used to claim reimbursement of payments or negotiations under a transfer documentary credit.
To send a reimbursement claim for amounts under a document set to a transfer L/C, BTTRCL transaction is used.
Select it from the menu item [Export Products ->Transfer L/C -> Transfer Documents -> Reimbursement Claim ].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.