Mr Old Man Q&A CAN THE ADVISING BANK ADVISE THE LC DIRECTLY TO THE BENEFICIARY,BYPASSING THE SECOND ADVISING BANK? By Mr Old Man Posted on August 7, 2024 1 min read 0 0 635 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, We have received and LC from the Issuing bank. There is also a 2nd advising bank given in the LC. The beneficiary is our client as well. If the beneficiary is ok can we advise the LC directly to them or should we necessarily follow the route of the 2nd advising bank to advise the LC. LC is available with any bank by negotiation. Regards, Rohiti Mehta —— ANSWER Hi, Normally, if the issuing bank instructs that the LC is to be advised through a named second advising bank, the advising bank should follow the issuing bank’s instructions. However, if the beneficiary, who maintains account with the advising bank, requests the advising bank to advise the LC directly to him bypassing the second advising bank to avoid costs due to involvement of many banks and the advising bank agrees to do so, the advising bank should inform the issuing bank of the same. 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?