Payment of advance does not create lien over supplier's assets: Expert

Your rights arise only from the contract between you and the supplier, say expert

Q. We opened a letter of credit through our bank. The last date for presenting it has expired. The beneficiary has not informed us about the shipment and is not answering our queries. Our bank is reminding us to close the expired LC. Our non-fund-based LC facility is also blocked. Are all bindings under LC automatically terminated once the LC expires?

Your bank is not under any obligation to pay against documents not presented in conformity with the terms and conditions of the LC within the validity of the LC. But they may be apprehensive that the beneficiary may have presented