The letter of credit
available at sight provides for the exporter to
be paid upon presentation to and examination
by the bank of the documents. The exporter
draws a draft which is his demand for
payment under the letter of credit on the bank,
with the tenor designated as sight.
Under a letter of credit payable at sight,
the exporter is paid by the bank once the bank
has determined that the documents comply
with the terms and conditions of the letter of
credit. If the importer is not in a position to
reimburse the bank, it is of no consequence to
the exporter.
