Bank Letters of Credit are managed through PTM's Unified Documentary Records.
The Bank Letters of Credit in the System are categorized in outgoing and incoming. Also the System maintains a separate Register of Documentary Records for each category.
MAIN STEPS IN WORKING WITH BANK LETTERS OF CREDIT
(the chart refers to material of BINETIX LLC for Management of Bank Letters of Credit published in the end of year 2014)
OUTGOING BANK LETTERS OF CREDIT:
In PTM, the following Orders can be issued to Documentary Records for outgoing Bank Letters of Credit:
1)Order for Issuing - serves to issue a new Bank Letter of credit on an already created Documentary Record;
2)Order for change - serves to describe a request for change on a specified issued Letter of credit;
3)Order for change the LoC type - serves to change the type of Letter of credit - from a a credit line to own funds and vice versa;
4)Order for payment - serves for the notification of accounting of received documents for payments under issued Letter of credit Through this Order, occured irregularities in the documents can be tracked;
5)Order for closing - serves as a step-by-step write-off of the commitment on an issued LoC from the Headquarters to the branch network. It is related to execution of off-balance accounting operations;
6)Order for fees - serves to manually perform accounting of fees and expenses in the processing of a Documentary Record;
7)Order for instructions - serves to exchange documents and notes between the branch network and the Headquarters.
INCOMING BANK LETTERS OF CREDIT:
In PTM, the following Orders can be issued to Documentary Records for incoming Bank Letters of Credit:
1)Order for advising - serves in the processing of documents on received Bank Letter and creation of a new Documentary Record;
2)Order for change - serves to process documents on received Bank Letter and creation of a new Documentary Record;
3)Order for discounting - applies when discounting of receivables on Letter of credit and payments to the beneficiary;
4)Order for documents - serves as a notification of received documents and accounting of payments on documents;
5)Order for closing - serves to manually close a Documentary Record and for executions of off-balance accounting operations;
6)Order for fees - serves to manually perform accounting of fees and expenses in the processing of a Documentary Record;
7)Order for instructions - serves to exchange documents and notes between the branch network and the Headquarters.
