November 21, 2009

The Bank Instruction Letter is the cover letter from the Beneficiary or his agent conveying the negotiable documents to the paying bank. The letter stipulates the documents included, and the number of copies of each, and the method of payment.
Definition of a Bank Instruction Letter
A letter from the beneficiary of a letter of credit to the paying bank with documents enclosed instructing the bank how and where to make the payment.
Purpose of a Bank Instruction Letter
The Bank Letter of Instruction is a letter on the beneficiary's letterhead stipulating which documents are enclosed to satisfy it's referenced letter of credit. It also provides the paying bank with instructions where to make the payment, and with whom to charge the fees. The documents and their exact number of original and copies are stated in the letter, and should match the requirements of the Letter of Credit.
Process for a Bank Instruction Letter
The Bank Instruction Letter is prepared by the Beneficiary as the cover letter for the negotiable document set.
Fields for a Bank Instruction Letter
Not applicable, text fields.