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 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 …

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 …

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 …

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 …

Mr. Old Man will get back here soon! QUESTION Dear Mr. Old Man, I am facing to a difficult case relating to bank guarantees subject to URDG 758. Please kindly give me your opinion. We have received two counter-guarantees (Counter-guarantee No. 1 and Counter-guarantee No. 2) from two different counter-guarantors instructing us to issue one bid guarantee for USD 1,000,000.00 …

A Co Tu ethnic woman in Tay Giang  – a mountainous district of Quang Nam, Vietnam QUESTION Dear Mr. Old Man, I have some stuff  about an LC case that really needs your advice as follows: My customer is an importer and the goods in this case is an acetylene-producing machine. My customer wants to ensure that they only make …

Hunting gold in Nevada QUESTION Hi Mr. Old Man, I am checking a bill of lading. The on board notation is signed and indicates as follows: Shipped on board Argo 26-Sep-2016 CMA CGM AND ANL AGENCIES (NZ) LTD As Agents for the Carrier The bill of lading is signed and  indicates as follows: Signed for the carrier ANL Singapore Pte Ltd …

QUESTION Hi Mr. Old Man, Could you please help me with the following case: We are the beneficiary of a confirmed L/C available with the confirming bank by deferred payment.  After shipment, we made a presentation to the confirming bank that refused to honour because one of the presented documents was discrepant. We could not replace the discrepant document with …

QUESTION Hey Mr. Old Man, Could you please help me in clarifying the answer of the following question: A credit is issued for the amount of USD15,000 and is stated to revolve monthly on an automatic and cumulative basis. The credit has a 9 months validity period. The following drawings are made in the first 5 months: January – USD12,500 …