In trade finance, banks are sometimes tempted to play detective when they see something that doesn’t look “geographically correct.” But under UCP 600, their role is not to check maps or shipping routes—it’s to examine documents on their face. A recent question about whether Toronto can be treated as a “port of discharge” illustrates this point well. QUESTION Dear Mr. …

Intro: In documentary credit practice, shipment dates play a critical role in determining whether a presentation is timely. Questions often arise when multiple charter party bills of lading are involved, especially when they carry different shipment dates under a single presentation. Rohini recently wrote in with a scenario on partial shipments and differing dates of shipment. Let’s look at the …

Intro In practice, not every LC presentation is textbook perfect. Sometimes banks and beneficiaries face the tricky situation of discrepant documents. A recurring question in trade finance circles is: If a nominated bank forwards documents “on approval,” is that still under UCP, or should it instead be treated as a documentary collection under URC? And a follow-up question naturally arises: …

Intro: Every now and then, I receive thoughtful questions from young professionals eager to step into the world of trade finance. Recently, Chaudhary wrote to me after following my LinkedIn posts, asking how best to build a strong foundation in this field. His question, and my response, may be useful for anyone considering the same path. QUESTION Hi sir, I …

  Intro: Every so often, LC practitioners stumble upon shipping terms that spark debate. One such term is “Loose Container”—often seen on draft or final Bills of Lading. Does it simply describe the cargo, or does it trigger a discrepancy under an LC? Let’s look at a real query from PSP and unpack the answer. QUESTION Dear Mr. Old Man, …

Intro: One of the recurring headaches in L/C practice is what to do with discrepant documents. The beneficiary wants their money, the nominated bank worries about reimbursement, and the issuing bank sits in the middle waiting for the applicant’s word. A common query is whether the issuing bank can “pre-approve” or authorize payment against documents with discrepancies, and what that …

This case highlights the risks for presenting banks when discounting a deferred payment undertaking (DPU) without explicit authorization from the issuing bank. It also illustrates how local court orders—particularly in jurisdictions that favor domestic parties—can override payment expectations under an LC, leaving the negotiating bank exposed. Fact Summary The issuing bank in Iraq incurred a deferred payment undertaking under an …

Năm 2017, Mr. Old Man chính thức xây dựng trang web www.mroldman.net dựa trên nền tảng của website cùng tên trên WordPress và blog từ thời Yahoo 360. Ban đầu, trang web chủ yếu đăng các bài viết và Q&A tư vấn về nghiệp vụ thanh toán quốc tế và tài trợ thương mại. Sau này, khi bắt đầu đam mê xe …

Intro: Sometimes in trade finance, a small action like endorsing a bill of lading too soon can create a big legal headache. What happens if a bank endorses the BL, then cancels that endorsement and returns the documents due to discrepancies? Here’s Mr. Old Man’s take — plus practical tips for both the beneficiary and the issuing bank on how …

  Intro: In practice, there have been cases where LCs available by negotiation with confirming banks state that drafts be drawn on the confirming bank. This does not comply with Article 2 of UCP 600. Where an LC contains such a term, should the draft be drawn on the confirming bank or the issuing bank? ______ QUESTION Dear Sir, Can …