Introduction A discrepancy in an LC presentation can create some practical questions that go beyond the documents themselves—particularly when the B/L is made out to the order of the issuing bank. If the applicant refuses to waive the discrepancies, does the issuing bank have to endorse the B/L before returning the documents? And, perhaps more importantly, who is responsible for …

INTRO This is an interesting question concerning the relationship between the issuing bank, advising bank, transferring bank, and RMA. In particular, can an issuing bank authorize a bank that does not have an RMA relationship with it to act as the transferring bank when that bank is the beneficiary’s bank? The following example illustrates one possible arrangement. QUESTION Can an …

Intro Every now and then, a document-checking question looks like a discrepancy at first sight, but a closer look at the purpose of the document may tell a slightly different story. In this case, the LC requires the insurance certificate to be made out to order and blank endorsed, while the insurance certificate presented is made out to the order …

Should the draft be drawn on the issuing bank or on the confirming bank? Intro Seventeen years ago, my website, www.mroldman.net, shared the following Q&A from the DCPro Discussion Forum. The discussion was about a rather interesting question: under a confirmed LC available by negotiation with the confirming bank, should the draft be drawn on the issuing bank or on …

Intro Every now and then, Mr. Old Man receives a question that looks simple at first glance but becomes rather complicated once you bring UCP 600, two confirming banks, and two places of expiry into the picture. Here is a recent question from Firas about whether an LC can be structured with two confirming banks and two places of expiry, …

  Introduction Two seemingly simple questions can sometimes hide an important documentary point: what exactly does the wording of the credit or document require us to establish? In the first question, the issue is whether an “ON BOARD AWB” must evidence the actual flight date. In the second, it is whether an amount shown as an “Inland Transit Limit” can …

Introduction In documentary credit examination, a question may arise when the credit requires a specific type of certificate, but the presented document bears a different title. For example, the credit requires a “Certificate of Quantity and Quality”, while the presented document is titled “Certificate of Analysis”. At first sight, the two titles do not appear to be similar. Does the …

  Introduction In documentary credit examination, a small difference in wording can sometimes make a significant difference. But does “survey agent” satisfy a credit requirement for a “claim settling agent”? Here is a question on this point. Question Dear Mr. Old Man, I have a question for you. The LC states: “Insurance policy should indicate claim settling agent in the …

Introduction A question was raised about a transferable LC in which the original credit specifically requires the Commercial Invoice to be issued in the name of the Applicant. At first glance, this may appear to create a problem for the First Beneficiary’s right to substitute its own invoice under UCP 600 Article 38(h). However, Article 38(g) provides an important mechanism …

Intro A small detail, but an interesting one. A bill of lading shows the Place of Receipt and Port of Loading as the same place. At first glance, one might think there is no need to mention the port of loading in the on-board notation. But what if the B/L also indicates a means of pre-carriage? That seemingly minor detail …