When “Better” Is Not Good Enough Intro In documentary credit practice, banks deal not with common sense but with strict compliance. Even if a document seems more reliable than what was asked for, the key question remains: does it match the LC conditions exactly? Question An L/C stated in Field 47A: “AT LEAST 14 DAYS DEMURRAGE AND DETENTION FREE AT DESTINATION TO BE CONFIRMED ON B/L … Read More
Issuance Dates of Documents under UCP 600: What Does Sub-article 14(i) Really Mean? In documentary credit practice, timing can make or break a presentation. One of the less talked-about rules in UCP 600 is sub-article 14(i), which deals with the issuance date of documents. Can a document be dated before the LC was even issued? And what happens if a document shows a date later than the day it was presented to the … Read More
Lời xin lỗi gửi anh Mark Anh Mark thân mến, Cách đây đúng 16 năm, Mr. Old Man đã lỡ viết một cái tút tuyên bố xanh rờn rằng sẽ “tạm biệt Facebook” nếu tìm được một “ngôi nhà” tốt hơn. Chắc hồi đó Facebook chưa xịn như bây giờ, nên Old Man mới dám buông lời “dọa dẫm” như vậy. Ấy thế mà 16 năm … Read More
Notify Party vs. Applicant’s Name and Address on a Bill of Lading Intro In documentary credit practice, it’s not unusual to see slight variations in how applicant details are reflected on a bill of lading. A common concern is whether the applicant’s name and address must appear separately, or if details shown in the notify party field are sufficient. Here’s a recent query Mr. Old Man received. ________ Question Dear Mr. Old … Read More
Sự cố chữ nghĩa: “Cựu người học” Sáng nay một người bạn gửi cho Mr. Old Man tấm ảnh backdrop kỷ niệm 40 năm của Trường Đại học Ngoại ngữ – ĐH Đà Nẵng, với dòng chữ nổi bật: “Ngày hội cựu người học”. Cụm từ “cựu người học” nghe thiệt lạ tai. Ngại dính tin pha-ke trên mang, Mr. Old Man nhờ ChatGPT kiểm tra lại … Read More
Where the Applicant Goes Bankrupt Bankruptcy of an LC applicant is one of those nightmare scenarios that beneficiaries and banks alike worry about. Does the issuing bank still have to pay if the applicant collapses before documents arrive? And if so, how can the bank protect itself? Let’s look at a real question I received and my response. __________ QUESTION Dear Mr. Old Man, First … Read More
Switch Bills of Lading: Issue Date vs. On-Board Date under UCP 600 In documentary credit practice, questions often arise about the relationship between the bill of lading issue date and the on-board date—especially in cases involving switch bills of lading and high-seas sales. Can the two dates differ significantly, and if so, what do UCP 600 and ISBP 821 say about it? QUESTION Dear Mr. Old Man, May I seek your opinion … Read More
Revolving Letters of Credit: Key Considerations and Hidden Risks Revolving letters of credit (RLCs) sound attractive for handling multiple shipments under one instrument. In theory, they save time and paperwork; in practice, they raise complex issues for both banks and traders. Before opening an RLC, it’s worth understanding how they work, the key points to watch out for, and why they are rarely used today. _______ QUESTION What are … Read More
NGHỈ HƯU CŨNG CÓ CÁI ĐỂ KHOE (English version below) Mr. Old Man “về vườn” đã hơn 4 năm, giờ thành tỷ phú thời gian nên ngày nào cũng lai rai một bài trên www.mroldman.net – MR. OLD MAN – For Those Who Eat, Sleep and Breathe Letters of Credit & Cycling. Đạp xe đường dài thì không còn nữa, nhưng bù lại, các bài viết và Q&A … Read More
Why Would a Buyer Prefer an LC While a Seller Prefers an SBLC? When it comes to trade finance, one of the recurring debates is whether to use a commercial Letter of Credit (LC) or a Standby Letter of Credit (SBLC). At first glance they may look similar, but in practice buyers and sellers have very different preferences. Buyers lean toward LCs, while sellers often push for SBLCs. The reasons lie in how … Read More