WHEN THE DUE DATE IS A NON – BANKING DAY Quoted from DCPro Discussion Forum (15 – 24 Feb, 2016) QUESTION I would like to seek for your opinion in the following case: Extract from L/C: 41D: AVAILABLE WITH…BY… ANY BANK BY NEGOTIATION 42C: DRAFT AT… 60 DAY AFTER BILL OF LADING FOR 100PCT OF FULL INVOICE VALUE 42A: DRAWEE ISSUING BANK (BIDV) BIDV received the complying document from the … Read More
TRANSFERRING BANK ’S LIABILITY UNDER SUB-ARTICLE 38 (i) QUESTION Dear Mr. Old Man, What happens when second beneficiary submits complying document but first beneficiary fails to submit complying documents and the applicant refuses to accept the documents and so also goods and does not release payment? Does it mean even the second beneficiary loses right to receive payment under LC? Regards, Subhash ———- ANSWER Hi, Good question! It … Read More
WHERE THE CONFIRMING BANK HONOUR A TIME DRAFT DRAWN ON ANOTHER NOMINATED BANK QUESTION Hi Mr. Old Man, If a LC is issued available with a nominated bank by negotiation and draft drawn on issuing bank, can the nominated bank just negotiate (purchase) the complying documents without negotiating the draft so as to qualify for negotiation with recourse? I understand once the nominated negotiated the draft, then it is bound to negotiate without … Read More
CAN A NOMINATED BANK HONOUR A DRAFT DRAWN ON A BANK OTHER THAN ITSELF? QUESTION Hi Mr. Old Man: Thanks for your reply. Can an issuing bank actually issue a LC available with nominated bank by acceptance with draft drawn on reimbursing/confirming/issuing bank/other named banks? I am asking this question because I understand the term “acceptance” as to mean the issuing bank authorizes the nominated bank to accept draft. If a draft is drawn … Read More
CAN A NON – NOMINATED BANK DISCOUNT A BILL? (quoted from DCPro Discussion Forum 16 Dec 2015) QUESTION Bank B in Germany confirmed a L/C, issued by Bank A in Brazil. Bank B forwarded the L/C by MT710 to the beneficiary through an advising bank in Canada. Field 40B states “Irrevocable and adding our confirmation”. The L/C is available with the confirming bank B in Germany by def. payment. … Read More
WHERE 1/3 ORIGINAL BILL OF LADING IS SENT TO THE ISSUING BANK QUESTION Mr. Old Man, We are exporting some goods to Nigeria. Importer Bank is First Bank of Nigeria, confirming bank is Standard Chartered Bank, Mumbai and advising bank is State Bank of India, Nagpur, India. In our LC there is a clause, wherein through our advising bank, we have to submit 2/3 original Shipped on Board OCEAN BILL OF LADING … Read More
FIVE BANKING DAY RULE One of the most dangerous elbow-shaped slopes of Hai Van Pass. QUESTION Dear Mr Old Man, I’d like to ask you a question relating to the 05 banking days after presentation day a bank has to determine if the presentation is complying. The issuing bank decides its a complying presentation and agrees to release the docs to applicant on 1st day while holding … Read More
SHIPPING GUARANTEE FOR RELEASE OF CARGOES WITHOUT PRODUCTION OF ORIGINAL BL QUESTION Respected Sir I have a query with regard to release of shipment without BoL , is it possible or what steps do we need to take to facilitate this pl. your thoughts would be much appreciated really . Regards Basskar Verma AISL —————— ANSWER Hi, The carrier would only release the cargoes against a duly endorsed original BL. If … Read More
NGÁN NGẠI HÀ NỘI QUÁN Bài viết này sẽ rất “cô đơn” vì nó “lạc lõng” giữa hàng trăm bài nghiệp vụ trên blog của Mr. Old Man chẳng liên quan gì đến chủ đề ẩm thực. Chê ai đó hay biểu lộ không hài lòng điều gì đó thường không phải là thói quen của Mr. Old Man. Mr. Old Man bất chợt viết … Read More