The procedure in making a payment under a foreign letter of credit is, first, to ascertain whether the credit is in order by having the signatures verified and noting the expiration dates, etc. The manner of reimbursement must then be determined. In the case of an advised credit the instructions usually are to take original and duplicate receipts and charge the amount to the is suing bank's account. If this is the case, the receipts are pre pared and the traveler signs them; the signatures are compared with the specimen and, if correct, the amount of the payment is in dorsed on the credit and the credit is returned to the traveler. The duplicate receipt is signed by the department head and by an officer and is taken to the paying teller, who gives the depart ment money to pay the beneficiary. A record is kept of all such payments. Tickets are then prepared charging the issuing bank's account and crediting the paying teller. Finally a form letter is prepared advising the issuing bank of the charge and enclosing the original receipt.
Records of the Department The records ordinarily kept in such a department consist of the following: T. For letters of credit issued by this bank: (a) A card index of beneficiaries, alphabetically arranged, containing sufficient information to enable the de partment to reply immediately and intelligently to inquiries about the identity of the beneficiary or the nature of the transactions with him.
(b) A list book, being a record of all tickets made out for drafts drawn under letters of credit. Entries are made from this into the journal.
(c) Journal.
(d) Ledger.
(e) Record of letters of credit issued, containing a complete description of each letter of credit: number, amount, date, date of expiration, terms under which issued, specimen of holder's signature, whether ever held under trust receipt, drafts drawn under it.
(f) Letters of credit held under trust receipt, a record of the letters of credit held in trust by interior correspondents.
(g) Letters of credit guaranteed, a record showing the letters guaranteed by any firm, the amounts for which issued, and the date of expiration.
2. For travelers' checks: (a) Journal.
(b) Ledger.
(c) Numerical record of travelers' checks, being a full descriptive record of travelers' checks issued, with a book allotted to each denomination.
(d) Record of travelers' checks held under trust receipt, giving those held by interior banks in trust.
. For letters of credit of other banks: (a) A book containing a record of accreditives opened and letters of credit drawn on the bank by foreign banks.
(b) A book containing a record of letters of credit issued by domestic correspondents in which this bank has been named as the reimbursing office.