Q&A Uncategorized ASSIGNMENT OF PROCEEDS By Mr Old Man Posted on October 22, 2015 1 min read 0 0 3,242 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, 1) Can the beneficiary present the documents to the nominated bank with instruction that payment is to be paid to another party? 2) If yes, how can we incorporate this clause into the LC? Thank you. Regards, BD ——— ANSWER Hi, 1) Yes. The beneficiary can assign any proceeds to which it may be entitled under the LC in accordance with the provisions of applicable law (see Article 39 UCP 600). It can instruct the nominated bank to pay the proceeds under the LC to the assigned party. However, whether the assigned party will receive the proceeds in foreign currency or in local currency depends on the provisions of the foreign exchange control regulations of its country. 2) No. This should be done outside the LC and in the above way. Kind 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?