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 …

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! Our company is going to open an LC but the exporter requires the LC to allow T.T.R. Though we have done some business with this exporter at FOB terms, we fear that with this clause the negotiating bank may collude with the exporter to claim reimbursement by swift message before shipment is made. Though the …

QUESTION Mr. Old Man, We are exporting some goods to Nigeria. Importer Bank is First Bank of Nigeria, confirming bank is Standard Chartered Bank, Mumbai and advising bank is State Bank of India, Nagpur, India. In our LC there is a clause, wherein through our advising bank, we have to submit 2/3 original Shipped on Board OCEAN BILL OF LADING …

Can an issuing bank pay only part of a discrepant presentation based on the applicant’s instructions? In documentary credit practice, situations sometimes arise where the applicant is willing to accept discrepant documents, but only on condition that the beneficiary agrees to a reduction in payment. This usually happens when market conditions have changed and the importer no longer wishes to …

QUESTION Dear Mr Old Man, We would appreciate your comment to the following questions: Question 1: LC requires in F 46A: Full set less one original of bill of lading… Does it comply with the LC requirement if the beneficiary presents two original bills of lading? Question 2: LC issued by Bank I states in Field 78 that the negotiating …

QUESTION Dear Mr. Old Man, We presented documents under six separate L/Cs covering a commingled shipment carried on the same vessel. Each bill of lading contained the usual commingling clause stating: “This shipment was loaded aboard the vessel as part of one original lot of 4000.153 kilos with no segregation…” However, the total quantity stated in the commingling clause was …

QUESTION Kính gửi anh Old Man, Hiện nay em cũng đang nghiên cứu về sản phẩm BPO, tuy nhiên còn khá mới mẻ tại Việt Nam. Anh có thể chia sẻ với em một chút kiến thức về sản phẩm này không ạ (phương thức giao dịch, …). Em cảm ơn a nhiều ———— ANSWER Hi, Cung cấp cho bạn …

QUESTION In response to a query at http://letterofcreditforum.com/content/i-need-some-clarification-regards-lc, you wrote: “Different from LC available by payment, LC available by negotiation allows the beneficiary to receive the payment by negotiating the sight drafts and documents at a nominated negotiating bank which is normally located in his country. The negotiation may be effected on a with or without recourse basis”. I do …

QUESTION Dear Mr. Old Man, I follow up your blog and see it very helpful. I have a question for you. Bank B sent Bank C an MT 710 showing some details as follows: Field 40B (Form of Documentary Credit): IRREVOCABLE ADDING OUR CONFIRMATION Field 52A (ISSUING BANK): BANK A Field 41A: (Available with … by): BANK B BY NEGOTIATION …