What are the risks faced by the issuing

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As a Canadian Exporter, you have received an order from India, covering twelve, 20' containers, of grade A apples, to be exporter under one contract, but 12 different shipments. Shipment from Montreal port to Mumbai port and value of each container is USD 50,000 FOB Montreal.

Canadian exporter is requesting a letter of credit at sight, supported by a red-clause letter of credit, as well, covering twelve shipments. The Indian importer wants to issue a cumulative revolving letter of credit, covering each shipment, and value to be negotiated upon clean documents, and discrepant fee.

On a group basis, please research, analyze, and discuss in a detailed manner the following: question: Finally, what are the risks faced by the issuing, and paying banks in the process?

Reference no: EM132709574

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