QUESTION Dear all, Is the payment clause that we shall pay only when we receive funds from issuing bank under original L/C, usual in transferred letters of credit and the banks are always using such structure of payment clause when transferring L/C or is it something which some banks are using but it is not proper? Thanks Snježana ———- ANSWER …

QUESTION Dear Mr. Old Man! Our company is going to open an LC but the exporter requires the LC to allow T.T.R. Though we have done some business with this exporter at FOB terms, we fear that with this clause the negotiating bank may collude with the exporter to claim reimbursement by swift message before shipment is made. Though the …

(Quoted from DCPro Discussion Forum 27 – 30 June, 2016) QUESTION Hi Beneficiary presented docs to us despite LC is restricted to another bank. We, acting as a presenting bank, sent the docs to issuing bank which was considered as clean and received the acceptance advice from issuing bank. Can we understand that this acceptance advice override the restriction terms …

QUESTION Dear Mr. Old Man, Insurance policy indicating expiry date for the presentation of claims We have received documents including an insurance policy showing: “Claims must be advised within 3 months from the date of discovery of loss/damage”. Is this statement considered as a stipulation of  “expiry date for the presentation of any claims” as per ISBP 745, paragraph K9? If …

A boat on Han river, Da Nang, Vietnam QUESTION Dear Mr. Old Man, I have a question regarding “to order” bill of lading. LC requires among other documents a full set of clean on board ocean bills of lading made out to the order of the issuing bank… Documents presented are complying and the issuing bank advises the applicant of …

QUESTION Dear Mr. Old Man, I have query regarding “banking days”. My office open regularly from Monday to Friday to handling documents (for LC). One day (in Saturday), my staffs came to office in order to change our workstation/layout of office. Suddenly, a courier service came to our counter gave my staff many of documents . Since we received the …

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 …

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 …

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 …

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 …