'Reimbursement Claim' means a request for reimbursement from the claiming bank to the reimbursing bank.
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, the nominated 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[MT 742 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 documentary credit.
The financed party is the issuing bank. The financing will either be created through the transactions “Send, Accept and Settle Documents” (BETPAY) or “Settle Usance Documents at Maturity” (BETSET).
To create a reimbursement claim for the finance amount of a document set under an Export LC, TRTRCL transaction is used.
Select it from the menu item[Financing Products -> Loan -> Main -> Reimbursement Claim].
(Users can directly start this transaction by clicking the (Launch transaction ) available in the Panel headline without having to select the relevant menu )
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.
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