When the applicant fails to honor the request for payment, the beneficiary will make a presentation for payment against the Standby LC. A beneficiary is typically only authorized to claim payment from an issuer in situations where the applicant is unable to successfully conclude the underlying contract.
In RIVO, the banks are allowed to register new claims under a Standby LC. This claim can be made for the full amount or partial amount prior to the expiry of the standby LC.
After the Standby LC transaction is issued by the bank, anytime a claim can be created by the bank on behalf of the beneficiary.
To raise a claim under SBLC, go to the Landing page (Standby LC transaction with Status: Issued) and click on the New Claim option from the actions drop-down.
Once the claim details are entered, please ensure to verify the details and/or attachments on the Review & Sign Page, tick the Sign check box and click the Save button.
The claim is now registered successfully under the standby LC transaction.
Another way to create claim under standby LC is by just clicking on the transaction and choose New Claim action.