Different Signatures on a Bill of Lading and Its Rider Page – Acceptable or Discrepant? Intro A seemingly small issue, yet one that often stirs debates among LC practitioners: Can a bill of lading and its attached page — signed by different offices of the same carrier — still be accepted under the LC? Here’s what Mr. Old Man thinks. _____ QUESTION Dear Mr. Old Man, The LC calls for a bill of lading. The … Read More
Who Gets to Discount a Deferred Payment LC? (A question that often pops up over coffee among trade bankers) Sometimes in LC discussions, what seems like a simple question turns out to be surprisingly layered. A friend recently asked whether an advising bank can discount a deferred payment under a confirmed LC, when the confirmation was added by another bank. At first glance, you might think, “Why not?” … Read More
When “Legal Competent Authority” Meets Chamber of Commerce – What Does the LC Really Mean? From time to time, I receive interesting questions from trade professionals that touch on both the letter and the spirit of UCP 600. Here’s one from Mr. C.R. Nishanth about a Certificate of Origin clause that uses the term “legal competent authority.” __________ QUESTION Dear Sir, How’s it going? I have the below clause mentioned in the Letter of Credit: … Read More
One Set of Documents Presented under Two Separate LCs – The “Combined Drawing” Dilemma Every now and then, exporters face a tricky situation — two letters of credit, same buyer, same goods, same vessel, and the urge to save time by presenting one combined set of documents. Sounds harmless enough, right? Not quite. What looks like a paperwork shortcut can easily turn into a “combined drawing” discrepancy — a frequent headache for both beneficiaries … Read More
Confirmation with a Side Agreement? And When the Confirming Bank Doubles as Reimbursing Bank! Intro Our friend Thomas from a Korean bank brought up two rather unusual LC situations that would make even the most seasoned trade finance professional pause for a sip of coffee. In the first, the confirming bank adds its confirmation but signs a side agreement with the beneficiary — allowing recourse if the issuing bank refuses payment due to discrepancies. … Read More
Who Should the Bill of Lading Be Made Out To — the Presenting Bank or the Issuing Bank? When a Letter of Credit (LC) says it’s available with any bank by deferred payment and requires a Bill of Lading (B/L) made out to the order of the negotiating bank and endorsed to the issuing bank, exporters sometimes get stuck on a practical question: To whose order should the Bill of Lading actually be issued? _____ QUESTION Dear Mr. … Read More
When a Revolving LC Keeps Turning — and When It Stops Intro: Every once in a while, a question pops up that seems simple but opens a door into the practical logic behind trade finance. This one came from Max, who was planning to use a revolving letter of credit for regular shipments and wanted to understand how the “cumulative” and “automatic” features actually work in real life. Question from Max … Read More
When a Feeder Vessel Is an Ocean Vessel A reader’s question to Mr. Old Man on interpreting Bills of Lading in transshipment cases Introduction In container trade, it’s common to see Bills of Lading (B/Ls) that mention both a feeder vessel and a mother vessel. However, confusion often arises when the same vessel appears as both the “Feeder Vessel” and “Ocean Vessel” on different pages of the B/L. … Read More
When the Confirming Bank Goes Insolvent — What Happens Next? Intro Confirmed LCs are designed to give exporters peace of mind — the comfort that even if the issuing bank or its country faces trouble, a confirming bank (often in the exporter’s own country) will step in and pay. But what if the confirming bank itself goes under before documents are presented? This question, raised by Ts., is not just … Read More
Who’s Really Insured? — When the Policy Lists Two Names Intro: Sometimes a small wording twist in an insurance document can spark big compliance headaches. One reader recently asked whether an insurance policy showing both the beneficiary and the issuing bank as insured parties meets LC requirements. Let’s see what Mr. Old Man has to say. QUESTION Dear Mr. Old Man, Warm greetings. I hope this message finds you well. … Read More