By Nguyen Huu Duc (Mr. Old Man) Recently, the author has received numerous questions from colleagues at banks and from exporters regarding letters of credit (LCs) issued by non-bank issuers via SWIFT message MT 710. In many cases, not only the exporter but also the bank has ended up “tasting the bitter fruit” from dealing with such LCs. This article …

In the world of documentary credits, the terms of availability play a critical role in determining which banks are authorized to act under the credit. A common point of confusion arises when a beneficiary chooses to present documents to a bank that is not nominated in the LC — raising the question: Can that bank negotiate the documents? And if …

In the fast-paced world of documentary credits, a single SWIFT message sent in error can expose an issuing bank to serious risks—especially when it concerns acceptance of discrepant documents. One such query came from Suraj, raising an important issue: What happens when a bank mistakenly sends an acceptance message without first securing a waiver from the applicant—and then tries to …

How a rookie banker, a stone carver, and an American tourist stumbled into a payment method none of them could name… yet. Back in the mid-1990s, Vietnam was just beginning to open up to the world. Foreigners were trickling in — carrying hard currency, curiosity, and occasionally, some very strange business proposals. I had just started my banking career at …

Hồi đó, khoảng giữa thập niên 90, Việt Nam mới mở cửa được vài năm. Người nước ngoài bắt đầu ghé thăm nhiều hơn, mang theo ngoại tệ, sự tò mò… và cả những phi vụ mua bán “lạ đời”. Còn Mr. Old Man thì mới chân ướt chân ráo vào Vietcombank Đà Nẵng, được phân về Phòng Tín dụng …

Intro: Two classic bill of lading dilemmas — and two areas where LC checkers often hesitate: Can a B/L indicate CY/CY even when the cargo is clearly LCL? Is an on-board notation on the feeder vessel acceptable when the port of loading matches the LC? These are questions that continue to pop up in practice — and while the rules …

Introduction: In the context of transferable letters of credit, the role and liability of the transferring bank are often misunderstood — particularly when the issuing bank fails to honour or delays payment. Is the transferring bank obligated to pay the second beneficiary? Does the answer change if the bank confirms the transferred credit or undertakes to pay at maturity? To …

Intro: In this Q&A, we examine two real-world scenarios involving a certificate confirming the vessel’s age — a common LC condition. While both certificates appear to meet the content requirement, questions arise over the identity and authority of the issuer. Is a letterhead necessary? Can any agent of the carrier sign such a certificate? And how should an issuing bank …

Introduction: In trade finance, especially under letters of credit, questions often arise around the treatment of surrendered bills of lading—particularly when only a copy is presented. One common point of confusion is whether such documents fall under UCP 600 Article 20, which governs bills of lading. In this Q&A, we clarify whether Article 20 applies to surrendered bills of lading, …

In documentary credit practice, few terms cause more misunderstanding than “documents sent on collection basis” — especially when a letter of credit (L/C) is involved and payment is at stake.  In this Q&A, Mr. Old Man responds to a concerned exporter whose bank forwarded documents to the issuing bank after noting discrepancies. Are the documents still governed by UCP 600? …