WHERE THE DOCUMENTS CONTAIN DISCREPANCIES NOT WAIVED BY THE APPLICANT QUESTION Hi Mr. Old Man, I hope you are doing fine. I have some follow-up questions again. 1/ What happens to an LC if it is discrepant and the buyer refuses to waive the discrepancies? a. Does the buyer typically let the LC expire? If so, are there any fees charged to the seller? b. I assume the seller would … Read More
WHERE THE INSURANCE CERTIFICATE SHOWS THE ISSUING BANK AS THE ASSURED PARTY QUESTION Dear Mr. Old Man, Following insurance clause in the LC, full set insurance certificate for 110pct of invoice value in favour of Bank of India, Mumbai covering All risks and war risks. Presented certificate states: Insured – Bank of India, Mumbai My view in this case Insured being the said Bank meets the LC requirement of insurance certificate in … Read More
MT 799 – PROOF OF FUNDS QUESTION Dear Duc Nguyen Huu Sincere greetings! How are you Bank Master? There is currently a new seller who requires the buyer to provide proof of any bank-to-bank funds. The buyer said that due to MT799/199, the entire payment needs to be deposited in the bank. Large companies have no problem due to their strong funds, but small and medium-sized … Read More
WHETHER THE LC CAN BE AMENDED AFTER THE DOCUMENTS HAVE BEEN PRESENTED TO THE ISSUING BANK QUESTION Hi sir, This is Jawad Ahmed from Askari Bank ltd. Pakistan. Hope this email finds you well. I have a question regarding Letter of Credit amendment. I have been seeking an amendment in Letter of credit where at the time of LC opening the unit price was USD 570 and partial documents were presented against this LC with the same … Read More
CAN MT 799 BE USED TO ISSUE A SBLC? QUESTION Dear Mr. Old Man, Good Day. We have received MT 799 under field 20 & field 21 indicated the same reference number. Followed by field 79 only and indicated irrevocable standby letter of credit no…… for USD1,000,000.00. We hereby authorize you to draw on Bank of Singapore …. upon your demand by authenticated swift…this SBLC expire on 1/3/2026. Charges … Read More
FAKE SWIFT MESSAGE SCAM Just when Mr. Old Man hoped for a quiet morning coffee, an “important” MT999 landed in my inbox — full of big promises, clean funds, and all the familiar perfume of a scam. A reader from Ecuador wrote: “My bank can’t find the MT999, but the sender says it expires after 48 hours. Is that possible?” Short answer: No. Long … Read More
CAN A TRANSFERRED LC CHANGE THE PAYMENT TERMS FROM SIGHT TO DEFERRED PAYMENT? QUESTION Dear Sir. Need a clarification on transferable LC regarding clause 42C: If the original LC mentions LC at sight, can the 1st beneficiary change this to LC 30 days usance when transferring this LC to the 2nd beneficiary ( if 2nd beneficiary agrees to LC 30 days). If a sight LC is transferred as a sight LC, we foresee … Read More
VẬN ĐƠN THEO HỢP ĐỒNG THUÊ TÀU LÀ CHỨNG TỪ SỞ HỮU HÀNG HÓA “NỬA VỜI” (*) Cách đây mấy hôm một nhóm bạn công tác tại một trung tâm tài trợ thương mại của một ngân hàng thương mại tranh luận với nhau về vấn đề vận đơn theo hợp đồng thuê tàu có phải là chứng từ sở hữu hàng hóa hay không? Một số bạn thì cho rằng Vận đơn theo hợp đồng thuê … Read More
WHETHER THE ISSUING BANK MUST ENDORSE THE BILL OF LADING WHEN RETURNING THE DISCREPANT DOCUMENTS TO THE PRESENTER? QUESTION Dear Mr. Old Man, I’ve been scouring the internet trying to find the right answer, when I found you blog and believe you may be able to help. We had shipped some Chrome Ore to China under Sight LC. Due to circumstances beyond our control, we could not submit documents within the presentation period. Though buyer was fully aware … Read More
WHETHER PAYMENT BY LC IS SAFE FOR THE SELLER? QUESTION Dear Mr. Old Man, I hope this email finds you well. I discovered your blog yesterday and I found it incredibly helpful. I have a couple of questions I’d like to ask, if you don’t mind. It is my understanding that sellers can only lose money on an LC transaction due to their own errors, like presenting the wrong … Read More