HOW TO PRESENT THE DOCUMENTS WHERE LC IS AVAILABLE WITH A NOMINATED BANK OUTSIDE THE BENEFICIARY’S COUNTRY This place is called God’s Well. I came here with some of my biking friends with our bikes on the shoulders. Dare not come back here again! QUESTION Dear Mr Old Man, We received an L/C with the details as follows: Sender: ABC Bank Singapore Receiver: XYZ Bank Vietnam Expiry date: 1/1/2017 in Vietnam Available with ABC Bank Singapore by negotiation. … Read More
WHERE THE DUE DATE IS A NON-BANKING DAY South Hai Van Pass QUESTION Usance bill payment falls on 13th December i.e. Tuesday and it is a holiday for the country of making the payment, but not a holiday for the currency of payment (Ex: Currency of payment is USD and that day is not a New york holiday). When we should pay? Is it on 12th or 14th? … Read More
WHERE DOCUMENTS UNDER LC ARE PRESENTED FOR COLLECTION UNDER URC 522 QUESTION I need your help to comment on below: We have received (LC) documents under schedule indicating that this presentation is subject to URC 522. Documents to be released against payment. I would like to know the reason for sending documents for collection under URC 422 instead of sending them in accordance with advised LC. UCP is more suitable for … Read More
WHETHER THE BENEFICIARY CAN NEGOTIATE THE DOCUMENTS WITH THE 1ST ADVISING BANK QUESTION Hi Sir, Can 1st advising bank contact the beneficiary and negotiate documents directly even there is a 2nd advising bank indicated in the LC? Regards, dotcom ———– ANSWER Hi, Where the L/C is available with any bank by negotiation, the beneficiary may present the documents to any bank including the first advising bank for negotiation. Where the L/C is … Read More
PAYMENT CLAUSE IN TRANSFERRED LETTERS OF CREDIT 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 … Read More
TRANSHIPMENT AND CHARTER PARTY BILL OF LADING QUESTION Dear Mr. Old Man Thank you for your passionate and willingness to answer us with so many questions. I find your posts extremely useful and valuable. I am quite new to letter of credit transactions and hope that you could enlighten my mind a little. I have question relating to transshipment in transport documents. I find that all transport … Read More
Partial Confirmation under UCP 600: Is It Allowed? Introduction Questions about L/C confirmation often resurface when transactions become large, long-term, and complex—especially in infrastructure projects where risk management is critical. One such question is whether a confirming bank may add its confirmation to only part of the credit amount, commonly referred to as partial confirmation. Although some practitioners believe that UCP 600 does not allow partial confirmation, the … Read More
WHERE THE APPLICANT REFUSES TO TAKE UP THE DOCUMENTS Yellow sand beach, Hai Van Pass QUESTION Dear Mr. Old Man, We appreciate your answer to the following case: At the request of the applicant, we issued an L/C fully secured by the applicant’s deposit account with our bank. The documents required for presentation including 3/3 original bills of lading made out to the order of our bank notify the … Read More
UCP 600 OR URC 522 QUESTION Dear Mr. Old Man, I have a question needing your help. We issued L/C No. xxx 123 in favour of Beneficiary B. The L/C was subject to UCP 600, but the documents were sent to us for collection. The covering schedule showed the following information: QUOTE We enclose the following documents for collection subject to the Uniform Rules for … Read More