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Dear Santiago Vega
Basically the LC is a very flexible instrument.
Hence there is no rule that dictates that it must cover a physical product.
For example:
Article 5 Documents v. Goods, Services or
Performance
Banks deal with documents and not with goods,
services or performance to which the documents may relate.
From article 5 it is clear that an LC also can cover
Services or Performance. What is important is that it clearly describes the
document(s) that are to trigger the payment.
At the same time there is no restriction in the LC
instrument as such that prevents it from having a maturity of 180 - 360 days.
I basically depends what the issuing bank is willing to issue.
I hope this helps you.
Best regards
Kim Christensen
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