After many years working with Letters of Credit, I have come to a rather uncomfortable truth: Most of the time, things run smoothly. But the moment a set of documents starts to feel “off”, your heartbeat changes. And when the question arises — “What if the documents are forged?” — it is no longer a theoretical exercise. It becomes a …

Intro Most LC transactions pass quietly, exactly as they should. But every now and then, a set of documents raises a different kind of question—one that no banker enjoys facing. This Q&A revisits how banks should respond when presented documents turn out to be forged, and why the answer is rarely as straightforward as the rules suggest.  Question Dear Mr. …

Transferable LCs often look straightforward—but once you get into the details, they rarely are. When money is involved, two questions always come up: who gets paid, and when? And are we really dealing with two independent sets of documents? Let’s keep it simple. QUESTION Dear Mr. Old Man, I have two questions regarding transferable letters of credit: When the second …

In documentary credit practice, transport documents often come with different titles that can make examiners uneasy. One common example is the “House Air Waybill.” Does its title alone justify a discrepancy? Let’s take a closer look. QUESTION Dear Sir, We have asked for airway bill only. However, we have received an airway bill titled “House Air Waybill”. Can we raise …

A recurring question in document examination is whether the flexibility allowed by ISBP on language may, in practice, create more problems than it solves—especially in an era of AI-driven translations. QUESTION Dear Mr. Old Man, ISBP 821 A21(b) states that when a credit is silent regarding the language of documents, they may be issued in any language. In practice, could …

When a bill of lading shows one party as shipper “on behalf of” another, a simple but important question arises: who is entitled to endorse the document? This issue becomes critical under a letter of credit, where a mismatch between the named shipper and the endorser can lead to refusal—even when the underlying trade arrangement is perfectly normal. Question Dear …

The following case is adapted from a recent discussion shared on LinkedIn by Mr. Xin Zhong. As with many practical cases discussed in professional forums, certain facts may be condensed, but the issues raised are both common and worth closer examination.  ___ QUESTION Recent LC case in China Case Summary: Issuing Bank: A Bank, Ho Chi Minh City Branch Negotiating …

The following question concerns an amendment request to accept surrendered bills of lading and scanned documents under a documentary credit, prompted by the suspension of courier services. It raises some practical considerations for issuing banks regarding document handling and control over the goods. QUESTION Hi, Hope everything goes well with you. We received the following amendment requests from the applicant: …

Transport documents continue to generate some of the most sensitive discrepancies under letters of credit. When time pressure meets documentary precision, practical solutions are sometimes tested against strict examination standards. The following question raises an issue that many practitioners may encounter in real transactions. As always in documentary credit practice, interpretation may differ among banks and jurisdictions. Readers are welcome …

Intro From time to time, L/C applicants try to build a little flexibility into the credit structure. One common request arises when a beneficiary operates in more than one location and has not yet decided where the documents will be negotiated. Can an L/C show two possible expiry places instead of one? A reader recently raised this practical question. Question …