1. Islamic Letters of Credit
  2. Define Attributes specific to an Islamic Product
  3. Generate Islamic LC Expiry/Closure Advices

3.2 Generate Islamic LC Expiry/Closure Advices

This topic describes to generate Islamic LC Expiry/Closure Advices

While creating an Islamic LC product, you can indicate whether a closure/expiry advice should be generated for Islamic LCs involving the product. These advices are generated based on the preferences that you specify for them.

Check against the appropriate option on the screen to indicate your preference. If you indicated that a closure/expiry advice should be generated, you need to indicate:
  • Whether it is to be generated before or after closure/expiry
  • The number of days before/after, expiry/closure when the advice should be generated

Table 3-4 Description

Term Definition
Islamic LC Expiry Processing The Islamic LC cannot be marked as ‘Expired’ if any commission or charge is outstanding for the Islamic LC. The system logs an exception if the same is encountered.
Islamic LC Closure Processing Upon Closure of the Islamic LC, The system checks to see if there are any outstanding receivable components in the Islamic LC (Commission and Charges to be collected from Bills availed against the Islamic LC). The system displays configurable error messages indicating the same.
Rate Code When defining the settlement details for a product, you can specify the rate type (under the Rate Code option) that should be used in case of cross-currency settlements. Your specification for the product will default to all contracts involving the product. However, you can change the rate type defined for the product to suit a contract entered under the product.
The ‘Rate Type’ indicates the type of exchange rate that will be used. It can be the:
  • Mid rate maintained for the currency pair
  • Buy or Sell rate depending upon the nature of the transaction (whether debit or credit)

Parent topic: Define Attributes specific to an Islamic Product