What is the name of the officer in charge of opening Letter of Credit for customers?

Letter of Credit
A: East Bank. Good morning.
B: Hello. May I speak to the officer in charge of opening Letter of Credit for customers.
A: Yes, this is George Tangkerson speaking. What can I do for you?
B: This is Andrea Yang from Southeast Computer Ltd. We have an oversea supplier who wants to settle payment through L/C. Since this is the first time we have a transaction, they prefer the safest way of securing settlement, and suggest L/C. But we never handled it before. And your bank is our favorite one where we do all our banking. So I’d like to know about L/C to smooth that new deal.
A: OK. Mrs. Yang, thank you for choosing our bank as your favorite bank. In fact, a documentary letter of credit, after payment in advance, represents the safest and fastest way of securing payment for exporters, as the exporters can personally retain control of the documents of title to the goods until the moment of acceptance of a bill of exchange.
B: I see, that’s why they want it. Could you tell me how many parties are involved in a credit?
A: Strictly speaking, there are five parties. The first one is the applicant, usually the buyer. In your case, it’s you. You arrange a credit in accordance with the terms of the contract you have made with the beneficiary.
B: You mean with the supplier?
A: Exactly, he is the second party, and the credit is issued in his favor.
B: I was told that if I come to your bank and ask you to open a L/C for us, you function as the issuing bank.
A: Correct. We, the issuing bank, commit ourselves in accordance with your instruction. And here comes the fourth party—the advising/confirming bank, which is located in the country of the beneficiary and is usually our bank’s correspondent. I mean the issuing bank’s correspondent. Then, the paying/accepting bank makes payment to the beneficiary.
B: So in the process of making settlements by means of L/C, first of all, the buyer applies to the issuing bank to open a credit in favor of the exporter. Will his application always be approved? How about my application?
A: Not necessarily. It will depend on the buyer’s creditworthiness. Before issuing a credit, the bank must make certain of its customer’s creditworthiness. If this is satisfactory, the credit is then advised to the exporter through a bank in his own country, that is the advising bank. In your case, I assure you that your application will be accepted, because we know your company very well through all the banking you have done with our bank.
B: Glad to hear that. Then, what is the issuing bank supposed to do next?
A: Under the term of credit, the issuing bank undertakes that the seller will be paid for his goods if he complies with certain stated conditions: these will call for certain documents, such as invoices, bills of lading and insurance documents. On condition that the documents presented to the advising bank due to him in exchange for tine documents.
B: Will the paying bank send the documents to you or to us?
A: To us by air-mail, never to you. When we have received the documents, we hand them to you. And when the ship docks, your company will presents the bills of lading to the shipping company and receive your goods.
B: So the payment for the goods by our company to you is a matter of arrangement between us and of no concern to the exporter?
A: That’s right. And the settlement between the banks for the amount paid by the issuing bank is carried out through their nostro and vostro accounts.
B: Oh, I see. The advantage of a credit to the seller as you mentioned is self-evident—he knows that he will receive the payment provided he complies with its terms, then are there any benefits to us?
A: Yes. Because the payment will only be made by the advising bank when the exact documents specified have been received—as these are the documents of tide, then once they are in hands of the paying bank, it will only be a matter of time before they come to your hands, allowing you to collect the goods.
B: Oh, thank you so much. Now I have a clear idea about L/C. Tomorrow I will go to your bank and open it. Thank you again. See you tomorrow.
A: OK. Great, you are welcome. See you tomorrow.
                  Letter of Credit
    A letter of credit is a financial instrument issued by a bank on behalf of one of its customers, which authorizes an individual or business firm to which it is addressed to draw drafts on the hank for its account under certain conditions as set forth in the document. In a letter of credit, the financial strength or credit of the bank is substituted for that of the bank’s customers simply because the credit of the hank may be more substantial and more widely known. Another reason for heavy reliance on the letter of credit is that it is a desirable way of establishing certain quality standards or classifications that the goods must meet. Finally, it permits the seller to receive almost immediate payment for his goods, as soon as they are shipped; as a result, the cost to the importer is less than if the seller had to wait for payment for an extended period. Irrevocable letters of credit are used in international finance and, as the name implies, cannot be changed without the consent of all parties concerned. Risks are numerous in international trade: accidents at sea, strikes, riots, and civil commotions in port cities, all of which can cause damage to ships and their cargo. Typically many documents are necessary to comply with in an international transaction, and these must be specified in an application for a letter of credit. Several copies of a commercial invoice are needed for office use, and customs invoices are required before some goods can be brought into this country. Probably the most important document stipulated in an application for a letter of credit is the negotiable on- beard ocean bill of lading. This document is a receipt that the cargo was received and was loaded on board a ship. Whoever holds the on-board ocean bill of lading has the title to the goods. Therefore, the bank must have this document before payment is made.
    After an importer has completed arrangements for the issuance of a letter of credit by the bank, the bank is instructed to deliver the letter of credit to the beneficiary. After receipt of the letter of credit, the foreign exporter arranges for the shipment of the goods to the importer in accordance with the terms of the letter of credit. When the exporter has prepared all documents required and delivered the goods to the ship, the documents are then attached to a draft and submitted to the exporter’s bank along with the letter of credit. If the documents are in order, the bank then negotiates the draft and forwards the documents to the bank in the importer’s country. Several procedures could be employed in transferring the funds to exporter’s bank. The importer’s bank could merely credit funds to the exporting bank’s account if the foreign bank carried a correspondent account with the bank in the importer’s country.
    Banks that issue L/C may be paid in cash—a simple transfer from the customer’s account to the bank. If, however the importer does not have all or a part of the funds, he must negotiate a loan from the bank. This loan could be unsecured assuming the borrower has sufficient credit worthiness, or it could be secured by the goods just imported. If these goods are ready for sell, they could be released to the importer on a trust receipt. As they are sold, the loan is repaid, or they might be placed in a warehouse, with the warehouse receipts serving as collateral for the loan. Whatever the arrangement, the importer receives the order bill of lading which gives him title to the goods. If the goods were to be, used in further manufacturing, a different kind of loan might be made with a longer maturity.