LC SWIFT Format: Field 42C (Drafts at…)

Field 42C (Drafts at…) is an optional field which means it can present or it may not present depending on the availability of the credit, either by Payment, Acceptance, Deferred payment or Negotiation (Field 41a).

Field 42C should present if the availability of the LC is made by Acceptance or Negotiation (Field 41a). On the other hand, if the LC is made available by payment or Deferred payment, field 42C would not present.

When field 42C presents, field 42D (Drawee) must also present. The Draft must be drawn by the drawer either on the issuing bank or the confirming bank, if any. Therefore, field 42D must present to indicate the Drawee bank. If the LC does not require confirmation by a confirming bank, the Draft must be drawn on the issuing bank. Again, the Drawee bank can either be indicated by full name and address or by indicating the SWIFT address or BIC.

The use of Draft or Bills of Exchange in trade is widely practiced by banks worldwide. The Draft can be drawn at sight or at a determinable future time (tenor/time). Further information on Draft will be posted later.

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