Uncategorized WHETHER AN EXPIRED LC CAN BE AMENDED TO EXTEND THE EXPIRY DATE By Mr Old Man Posted on May 22, 2015 1 min read 8 0 8,592 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, Can an expired LC be amended to extend the expiry date? Is there any provision that prevents the expired letter of credit from being amended to extend the expiry date? Thank you PMB ——– ANSWER Hi, The answer is No and Yes. It depends. According to UCP 600 sub-article 10 (a), except as otherwise provided by article 38, an LC can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank (if any) and the beneficiary. Where the LC expires without any complying presentation being made, the issuing bank’s obligation under the LC will expire accordingly. The issuing bank may consider to amend the expired LC only when: (i) its internal regulations allow such amendment; (ii) the applicant requests such amendment; (iii) such amendment does not affect the applicant’s capacity to reimburse the issuing bank; and/or (iv) it has reasons to believe that the advising bank will agree to advise the amendment and that the beneficiary will accept the amendment. … Kind regards, Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?