MT 799 - Irrevocable Undertakings
AEB must receive an authenticated message directly from the issuing bank, requesting
AEB to provide our irrevocable undertaking (or confirmation to the reimbursement)to the
advising bank. Please find below the suggested wording using the MT799 Documentary
Credit Free Format Message.
M 20 Transaction Reference Number
O 21 Related Reference
M 79 Narrative
PLEASE ADD YOUR CONFIRMATION/IRREVOCABLE UNDERTAKING TO
OUR REIMBURSEMENT AUTHORIZATION.
[NAME OF ADVISING BANK]
[LC NUMBER]
[LC AMOUNT]
[TENOR OF DRAFT]
[LATEST SHIPMENT DATE]
[WHO WILL PAY CONFIRMATION FEE?]
[IS LC RESTRICTED FOR NEGOTIATION?]
WE AUTHORIZE YOU TO DEBIT OUR ACCOUNT NO._________
UPON RECEIPT OF REIMBURSEMENT CLAIM
IN THE EVENT REIMBURSEMENT CLAIM SENT DIRECTLY TO ISSUING
BANK, PAYMENT MUST BE EFFECTED THROUGH AMEX, NEW YORK, LC
DEPT., OTHERWISE AMEX, NY WILL HAVE RECOURSE ON THE ISSUING
BANK FOR RECOVERY OF CHARGES.
[GENERAL MERCHANDISE DESCRIPTION]
[PORT/COUNTRY OF LOADING]
[PORT/COUNTRY OF DISCHARGE]
For non-US dollar items, the above format must be applied, with the following modified reimbursement
clause.
YOU ARE AUTHORIZED TO DEBIT OUR ACCOUNT WITH YOU VALUE
TWO WORKING DAYS AFTER RECEIPT OF NEGOTIATING BANK’S CLAIM
FOR THE USD EQUIVALENT AT THE PREVAILING RATE.
M = Mandatory field O = Optional field
S.W.I.F.T.– WIRE FORMAT MT799:
NOTIFICATION :
DELIVERY STATUS :
PRIORITY / DELIVERY :
MESSAGE INPUT REFERENCE :
----------MESSAGE HEADER----------
SWIFT INPUT : MT799 PROOF OF FUNDS
SENDER :
SWIFT CODE :
BANK OFFICER :
AMOUNT :
ACCOUNT NAME :
ACCOUNT NUMBER :
RECEIVER :
SWIFT CODE :
ACCOUNT NAME :
ACCOUNT NUMBER :
ROUTING NUMBER :
BANK OFFICER :
IN FAVOR OF :
----------SWIFT MESSAGE TEXT----------
TRANSACTION CODE :
TRANSACTION NUMBER :
WE,---INSERT NAME & LOCATION OF SENDING BANK--- REPRESENTED BY THE UNDERSIGNED OFFICERS, HERBY CONFIRM WITH FULL BANK RESPONSIBILITY AND LIABILITY ON BEHALF OF OUR CLIENT ---INSERT NAME OF ACCOUNT HOLDER/SIGNATORY--- CASH FUNDS IN THE AMOUNT OF ---INSERT AMOUNT IN WORDS--- MILLION UNITED STATES DOLLARS (USD $,000,000.00) IN ACCOUNT NUMBER __________ AS OF THE DATE OF THIS TRANSMISSION.
DATE RECORDED :(INSERT DATE)
BANK OFFICER: BANK OFFICER:
PIN: PIN
----------MESSAGE TRAILER----------
MT799 is not a banking term but instead a SWIFT format. It is also known a 'free format'.
This format is normally used for interbank communication to update on the status of documents received & sent, payment received, paid & reimbursed and other matters relating to documents drawn under LC and Collections.
Messages under MT799 require no authentication as they carry no monetary value but only notification unlike MT700/701 or MT202
MT799 is a simple text message, sent bank to bank. This is used for a bank to bank proof of funds, only. The MT799 is not a form of payment and it is not a bank undertaking or promise to pay. It is simply a bank to bank confirmation of the funds on deposit, nothing more.
Visit:
www.swift.com S.W.I.F.T.
Society for Worldwide Interbank Financial Telecommunications.
MT = Message Type
99 = Message level
MT-799 is a communication between financial institutions, where one institution commits to honor a debt on behalf of a client.
In USA NO BANK or financial institution will engage in this type of commitment on behalf of a client. This type of commitment requires a corporate resolution and approval by the board of directors.
Cancer
