Uncategorized AMENDMENT TO THE TRANSFERRED LC By Mr Old Man Posted on November 24, 2012 1 min read 0 0 2,430 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, At the first beneficiary’s request, we as transferring bank has transferred the L/C to the second beneficiary. Now the first beneficiary requests our bank to amend the transferred L/C to change the unit price. Can we do that? Looking forward to hearing from you. Thank you.————ANSWER Hi, According to sub-article 38 (g) the transferred L/C must accurately reflect the terms and conditions of the L/C with the exception of the amount of the credit, any unit price stated therein, the expiry date, the period for presentation, or the latest shipment date or given period for shipment, any or all of which may be reduced or curtailed. So, the transferring bank can amend the unit price stipulated in the transferred L/C as requested by the first beneficiary. However, its is the second beneficiary that decides whether to accept or reject such an amendment. Best regards,Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?