MT 760 Guarantee / Standby Letter of Credit

By

-

11 October 2018

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 760 Guarantee / Standby Letter of Credit?

MT 760 is a swift message type that is used by issuing banks when issuing a guarantee or a standby letter of credit.

Issuing banks send terms and conditions of a guarantee or a standby letter of credit with a MT 760 Guarantee / Standby Letter of Credit swift message type.

On below table you can find detailed explanations of the fields used under MT 760 swift messages.

MT 760 Guarantee / Standby Letter of Credit

Status	Tag	Field Name
M	27	Sequence of Total
M	20	Transaction Reference Number
M	23	Further Identification
O	30	Date
M	40C	Applicable Rules
M	77C	Details of Guarantee
O	72	Sender to Receiver Information
		O : Optinal M : Mandatory

MT 760 Guarantee / Standby Letter of Credit Rules:

This message is sent between banks involved in the issuance of a guarantee.
It is used to issue a guarantee or to request the Receiver to issue a guarantee.
This message may also be used for Standby Letters of Credit.
Any applicable rules must be indicated in field 40C. If no rules are applicable, this must also be indicated (code “NONE”). If the guarantee is subject to rules other than URDG (Uniform Rules for Demand Guarantees, International Chamber of Commerce, Paris, France) or ISP (International Standby Practices, International Chamber of Commerce, Paris, France) it must be indicated in field 40C using the code OTHR.
The definition of this message type does not specify any characteristics or underlying agreements of the actual guarantee. Therefore, all specific terms, conditions and details of the guarantee are to be specified in field 77C.
Since a SWIFT message is restricted to the maximum input message length, more than one MT 760 may be required to accommodate all the details of the guarantee.

What Does Current Bank Guarantee Rules (URDG 758) or Standby Letter of Credit Rules (ISP 98) Say About the Issuance of a Bank Guarantee or a Standby Letter of Credit?

According to URDG 758 a guarantee is deemed to be issued when it leaves the control of the guarantor.

URDG 758 states that a guarantee is irrevocable on issue even if it does not state this.

As per URDG 758 a guarantee may be advised to a beneficiary through an advising bank. By advising a guarantee, the advising bank certifies to the beneficiary, that it has satisfied itself as to the apparent authenticity of the guarantee. Advising bank also certifies that the advice accurately reflects the terms and conditions of the guarantee as received from the issuing bank.

According to ISP 98 a standby letter of credit is an irrevocable, independent, documentary, and binding undertaking when issued and need not so state.

ISP 98 states that unless an advice states otherwise, it signifies that:

(i) the advisor has checked the apparent authenticity of the advised message in accordance with standard letter of credit practice; and
(ii) the advice accurately reflects what has been received.

MT 756 Advice of Reimbursement or Payment

By

Ozgur Eker (CDCS)

-

11 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 756 Advice of Reimbursement or Payment?

MT 756 is a special swift message type that is sent by the issuing bank to the bank from which it has received documents or by the reimbursing bank to the bank from which it has received a reimbursement claim.

It may also be sent by the bank nominated to pay/accept/negotiate/incur a deferred payment undertaking to the bank from which it has received documents.

It is used to advise the Receiver about reimbursement or payment, to that bank, for a drawing under a documentary credit for which no specific reimbursement instructions or payment provisions were provided.

The account relationship between the Sender and the Receiver is used unless otherwise expressly stated in the message.

MT 756 Advice of Reimbursement or Payment

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Presenting Bank's Reference
M	32B	Total Amount Claimed
M	33A	Amount Reimbursed or Paid
O	53a	Sender's Correspondent
O	54a	Receiver's Correspondent
O	72	Sender to Receiver Information
		O : Optinal M : Mandatory

MT 756 Network Validated Rules

C1 The currency code in the amount fields 32B and 33A must be the same.

MT 756 Usage Rules

The code RCB may only be used in field 72 if both fields 53a and 54a are present in the message.

Sample: MT 756 Advice of Reimbursement or Payment SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 756
Receiver : OELBATSW
Message Text

20 : Sender’s Reference
LC543217890

21 : Presenting Bank’s Reference
IMLC 123/25544

32B : Total Amount Claimed
EUR45000

33A : Amount Reimbursed or Paid
131230EUR45000

53A : Sender’s Correspondent
OELBAT2L

End of Message Text/Trailer

MT 754 Advice of Payment/Acceptance/Negotiation

By

Ozgur Eker (CDCS)

-

10 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 754 Advice of Payment/Acceptance/Negotiation?

MT 754 is a special swift message type that is sent by the paying, accepting or negotiating bank, or the bank incurring a deferred payment undertaking, to the issuing bank.

It may also be sent by the bank to which documents have been presented to a bank that has been nominated to pay/accept. It is used to advise the Receiver that documents were presented in accordance with the credit terms and are being forwarded as instructed.

The MT 754 may also be used:

for the settlement of the payment/negotiation
as a pre-notification of a reimbursement claim from the claiming bank to the issuing bank
as a pre-debit notification from the claiming bank to the issuing bank.

Note: Where a pre-debit notification from the reimbursing bank to the issuing bank is required, banks should use the MT 799 Free Format message, specifying the future date of debit.

MT 754 Advice of Payment/Acceptance/Negotiation

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Related Reference
M	32a	Principal Amount Paid/Accepted/Negotiated
O	33B	Additional Amounts
O	71B	Charges Deducted
O	73	Charges Added
O	34a	Total Amount Claimed
O	53a	Reimbursing Bank
O	57a	Account With Bank
O	58a	Beneficiary Bank
O	72	Sender to Receiver Information
O	77A	Narrative
		O : Optinal M : Mandatory

MT 754 Network Validated Rules

C1 Either field 72 or 77A may be present, but not both.
C2 Either field 53a or 57a may be present, but not both.
C3 The currency code in the amount fields 32a and 34a must be the same.

Sample: MT 754 Advice of Payment/Acceptance/Negotiation SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 754
Receiver : OELBATSW
Message Text

20 : Sender’s Reference
LC543217890

21 : Related Reference
IMLC 123/25544

32A : Principal Amount Paid
130817EUR45000

73 : Charges Added
COMMISSION EUR250

34A : Total Amount Claimed
130817EUR45250

53A : Reimbursing Bank
DELBATSW
End of Message Text/Trailer

MT 752 Authorisation to Pay, Accept or Negotiate

By

Ozgur Eker (CDCS)

-

10 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 752 Authorisation to Pay, Accept or Negotiate?

MT 752 is a special swift message type that is sent by the issuing bank, or the nominated bank if so authorized by the issuing bank, to a paying/accepting/negotiating bank in response to a request for authorization to pay/accept/negotiate/incur a deferred payment undertaking previously requested via an MT 750 Advice of Discrepancy or otherwise.

It is used to advise the Receiver that documents may be taken up, notwithstanding the discrepancies, provided they are otherwise in order.

MT 752 Authorisation to Pay, Accept or Negotiate

Status	Tag	Field Name
M	20	Documentary Credit Number
M	21	Presenting Bank's Reference
M	23	Further Identification
M	30	Date of Advice of Discrepancy or Mailing
O	32B	Total Amount Advised
O	71B	Charges Deducted
O	33a	Net Amount
O	53a	Sender's Correspondent
O	54a	Receiver's Correspondent
O	72	Sender to Receiver Information
		O : Optinal M : Mandatory

MT 752 Network Validated Rules

C1 If fields 32B and 71B are both present, then field 33a must also be present.
C2 The currency code in the amount fields 32B and 33a must be the same.

MT 752 Usage Rules

When cover is to be remitted via other banks, these banks are specified in fields 53a and 54a.
The code RCB may only be used in field 72 if both fields 53a and 54a are present in the message.

Sample: MT 752 Authorisation to Pay, Accept or Negotiate

SWIFT Message
Sender : AMCONL2A
Message Type : 752
Receiver : OELBATSW

Message Text

20 : Documentary Credit Number
LC543217890

21 : Presenting Bank’s Reference
LIS22312

23 : Further Identification
ACCEPT

30 : Date of Advice of Discrepancy
130815
End of Message Text/Trailer

MT 750 Advice of Discrepancy

By

Ozgur Eker (CDCS)

-

9 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 750 Advice of Discrepancy?

MT 750 is a swift message type that is sent by the bank to which documents have been presented, to the issuing bank.

It may also be sent to a bank nominated to pay/accept/negotiate/incur a deferred payment undertaking.

It is used to advise the Receiver that documents which have been presented are not in accordance with the terms and conditions of the credit.

The MT 750 is a request for authorization to take up documents. Authorization may be provided using an MT 752 Authorisation to Pay, Accept or Negotiate; a negative reply to the request may be provided using an MT 796 Answers.

MT 750 Advice of Discrepancy

Status	Tag	Field Name
M	20	Sender's Reference
M	21	Related Reference
M	32B	Principal Amount
O	33B	Additional Amount
O	71B	Charges to be Deducted
O	73	Charges to be Added
O	34B	Total Amount to be Paid
O	57a	Account With Bank
O	72	Sender to Receiver Information
M	77J	Discrepancies
		O : Optinal M : Mandatory

MT 750 Network Validated Rules
C1 If field 33B and/or field 71B and/or field 73 is/are present, field 34B must also be present.
C2 The currency code in the amount fields 32B and 34B must be the same.

Sample: MT 750 Advice of Discrepancy SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 750
Receiver : OELBATSW
Message Text

20 : Sender’s Reference
LC543217890

21 : Related Reference
IM-DOC 123/2563789

32B : Principal Amount Claimed
EUR45000

77J : Discrepancies
COPY CONSULAR CERTIFICATE OF ORIGIN NOT PRESENTED AND COPY LETTER OF DECLARATION FROM BENEFICIARY’S TO APPLICANT DOES NOT SHOW ORIGINAL CONSULAR INVOICE AND CERTIFICATE OF ORIGIN AIRMAILED TO APPLICANT.

End of Message Text/Trailer

MT 747 Amendment to an Authorisation to Reimburse

By

Ozgur Eker (CDCS)

-

9 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 747 Amendment to an Authorisation to Reimburse?

MT 747 is a swift message type that is sent by the bank which has issued an authorization to reimburse (issuing bank) to the reimbursing bank.

It is used to inform the Receiver about amendments to the terms and conditions of the credit relevant to the authorization to reimburse.

The amendment is to be considered as part of the authorization to reimburse.

On below table you can find detailed explanations of the fields used under MT 747 Amendment to an Authorisation to Reimburse swift messages.

MT 747 Amendment to an Authorisation to Reimburse

Status	Tag	Field Name
M	20	Documentary Credit Number
O	21	Reimbursing Bank's Reference
M	30	Date of the Original Authorisation to Reimburse
O	31E	New Date of Expiry
O	32B	Increase of Documentary Credit Amount
O	33B	Decrease of Documentary Credit Amount
O	34B	New Documentary Credit Amount After Amendment
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
O	72	Sender to Receiver Information
O	77A	Narrative
		O : Optinal M : Mandatory

MT 747 Network Validated Rules

C1 At least one of the fields 31E, 32B, 33B, 34B, 39A, 39B, 39C, 72 or 77A must be present.
C2 If either field 32B or 33B is present, then field 34B must also be present.
C3 If field 34B is present, either field 32B or 33B must also be present.
C4 Either field 39A or 39B, but not both, may be present.
C5 The currency code in the amount fields 32B, 33B and 34B must be the same.

MT 747 Usage Rules

Terms and conditions which are not mentioned in the amendment message remain unchanged.
The cancellation of an MT 740 Authorisation to Reimburse takes the form of an amendment. The MT 747 must therefore be used.
There are special fields for amendments to the date of expiry and for increases or decreases in the amount of the documentary credit. All other amendments must be specified in field 77A.

Sample: MT 747 Amendment to an Authorisation to Reimburse SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 747
Receiver : OELBATSW
Message Text

20 : Sender’s Reference
LC543217890

30 : Date of Original Authorisation to Reimburse
130819

31E : New Date of Expiry
131230

32B : Increase of Documentary Credit Amount
USD5000

34B : New Documentary Credit Amount After Amendment
USD55000
End of Message Text/Trailer

MT 742 Reimbursement Claim

By

Ozgur Eker (CDCS)

-

8 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 742 Reimbursement Claim?

MT 742 is a swift message type that is sent by the paying/negotiating bank to the bank authorized to reimburse the Sender for its payments/negotiations.

It is used to claim reimbursement of payment(s) or negotiation(s) under a documentary credit, as relevant to the reimbursing bank.

On below table you can find detailed explanations of the fields used under MT 742 Reimbursement Claim swift messages.

MT 742 Reimbursement Claim

Status	Tag	Field Name
M	20	Claiming Bank's Reference
M	21	Documentary Credit Number
O	31C	Date of Issue
M	52a	Issuing Bank
M	32B	Principal Amount Claimed
O	33B	Additional Amount Claimed as Allowed for in Excess of Principal Amount
M	71B	Charges
M	34a	Total Amount Claimed
O	57a	Account With Bank
O	58a	Beneficiary Bank
O	72	Sender to Receiver Information
		O : Optinal M : Mandatory

Sample: MT 742 Reimbursement Claim SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 742
Receiver : OELBATSW

Message Text

20 : Claiming Bank’s Reference
LC543217890

21 : Documentary Credit Number
IM-DOC 123/2563789

31C : Date of Issue
130622

52A : Issuing Bank
ITSLBE55

32B : Principal Amount Claimed
EUR45000

71B : Charges
/COMM/EUR300,

34B : Total Amount Claimed
EUR45300

57A : Account With Bank
ROTTNL2A

58A : Beneficiary Bank
/700-122433 ROTTNL55
End of Message Text/Trailer

MT 740 Authorisation to Reimburse

By

Ozgur Eker (CDCS)

-

8 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 740 Authorisation to Reimburse?

MT 740 is a special swift message type that is sent by the issuing bank to the reimbursing bank.

It is used to request the Receiver to honour claims for reimbursement of payment(s) or negotiation(s) under a documentary credit.

The MT 740 authorizes the reimbursing bank to debit the account of the Sender, or one of the Sender’s branches if so indicated, for reimbursements effected in accordance with the instructions in the MT 740.

On below table you can find explanations regarding the fields used under MT 710 swift messages.

You can also reach individual pages of each field by clicking the corresponding links.

MT 740 Authorisation to Reimburse

Status	Tag	Field Name
M	20	Documentary Credit Number
O	25	Account Identification
M	40F	Applicable Rules
O	31D	Date and Place of Expiry
O	58a	Negotiating Bank
O	59	Beneficiary
M	32B	Credit Amount
O	39A	Percentage Credit Amount Tolerance
O	39B	Maximum Credit Amount
O	39C	Additional Amounts Covered
M	41a	Available With ... By ...
O	42C	Drafts at ...
O	42a	Drawee
O	42M	Mixed Payment Details
O	42P	Deferred Payment Details
O	71A	Reimbursing Bank's Charges
O	71B	Other Charges
O	72	Sender to Receiver Information
		O : Optinal M : Mandatory

MT 740 Network Validated Rules

C1 Either field 39A or 39B, but not both, may be present.
C2 When used, fields 42C and 42a must both be present.
C3 Either fields 42C and 42a together, or field 42M alone, or field 42P alone may be present. No other combination of these fields is allowed.
C4 Either field 58a or 59, but not both, may be present.

Sample: MT 740 Authorisation to Reimburse SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 740
Receiver : OELBATSW

Message Text

20 : Documentary Credit Number
LC543217890

40F : Applicable Rules
URR LATEST VERSION

32B : Credit Amount
USD45000

41A : Available With … By …
NOMISESW BY ACCEPTANCE

71A : Reimbursing Bank’s Charges
CLM

72 : Sender to Receiver Information
RESTRICTED TO CLAIMING BANK’S ACCEPTANCE COMMISSION

End of Message Text/Trailer

MT 734 Advice of Refusal

By

Ozgur Eker (CDCS)

-

8 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 734 Advice of Refusal?

MT 734 message is sent by the issuing bank to the bank from which it has received documents related to a documentary credit.

It may also be sent by the bank nominated to pay/accept/negotiate/incur a deferred payment undertaking to the bank from which it has received documents.

It is used to advise the Receiver that the Sender considers the documents, as they appear on their face, not to be in accordance with the terms and conditions of the credit and that, consequently, it refuses them for the discrepancies stated.

The Sender also provides the Receiver with details regarding the disposal of the documents.

This message type may also be used for claiming a refund.

MT 734 Advice of Refusal

Status	Tag	Field Name
M	20	Sender's TRN
M	21	Presenting Bank's Reference
M	32A	Date and Amount of Utilisation
O	73	Charges Claimed
O	33a	Total Amount Claimed
O	57a	Account With Bank
O	72	Sender to Receiver Information
M	77J	Discrepancies
M	77B	Disposal of Documents
		O : Optinal M : Mandatory

MT 734 Advice of Refusal Network Validated Rules

C1 If field 73 is present, field 33a must also be present.
C2 The currency code in the amount fields 32A and 33a must be the same.

Sample: MT 734 Advice of Refusal SWIFT Message

SWIFT Message
Sender : AMCONL2A
Message Type : 734
Receiver : OELBATSW
Message Text

20 : Sender’s TRN
EXP54321

21 : Presenting Bank’s Reference
IMP145322

32A : Date and Amount of Utilisation
130921GBP100000

73 : Charges Claimed
YOUR CHARGES GBP 100, CABLE GBP30, INTEREST GBP20,

33A : Total Amount Claimed
130927GBP100150

77J : Discrepancies
PARTIAL SHIPMENT EFFECTED ORIGINAL COMMERCIAL INVOICE NOT PRESENTED

77B : Disposal of Documents
/HOLD/

End of Message Text/Trailer

MT 732 Advice of Discharge

By

Ozgur Eker (CDCS)

-

8 October 2018

0

Swift is a provider of secure message platform for financial institutions mainly for banks.

Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.

For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.

Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.

What is MT 732 Advice of Discharge?

This message is sent by the issuing bank to the paying/negotiating or accepting bank.

It may also be sent by the paying/accepting/negotiating bank to the bank from which it has received documents.

It is used to advise the Receiver that the documents received with discrepancies have been taken up.

MT 732 Advice of Discharge

Status	Tag	Field
M	20	Sender's TRN
M	21	Presenting Bank's Reference
M	30	Date of Advice of Payment/Acceptance/ Negotiation
M	32B	Amount of Utilisation
O	72Z	Sender to Receiver Information
		M = Mandatory, O = Optional

NewsPaper

MT 760 Guarantee / Standby Letter of Credit

MT 756 Advice of Reimbursement or Payment

MT 754 Advice of Payment/Acceptance/Negotiation

MT 752 Authorisation to Pay, Accept or Negotiate

MT 750 Advice of Discrepancy

MT 747 Amendment to an Authorisation to Reimburse

MT 742 Reimbursement Claim

MT 740 Authorisation to Reimburse

MT 734 Advice of Refusal

MT 732 Advice of Discharge

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