Intro From time to time, confirming banks request that an LC be amended to nominate a reimbursing bank, or even to obtain a reimbursement undertaking. A reader recently asked whether this practice is supported by ICC rules, or whether it is simply a matter of banking practice and risk management. It is a good question, because many practitioners assume that …

QUESTION Dear Mr. Old Man, I have a question as follows: Is there any ICC opinion on the situation where the issuing bank can return the documents on the grounds that the documents are presented after the LC expiry date? If the Applicant has received the goods, is the issuing bank obliged to pay the documents? Is there a case …

QUESTION Dear Sir, This is Jawad from Askari Bank Pakistan. Please answer my question below: We issued LC available by negotiation and we did not include “All drafts” clause in 47A. Applicant has requested for Amendment in LC today and wants to add Clause in field 47 as below: ‘Drafts / bill of exchange not required.’ Please suggest if we …

QUESTION Dear Sir We have an LC showing Applicant Name and Address without the ICE NUMBER: 001343300000073. The BL shows this ICE Number:  001343300000073 in Notify Party. Will this be a Discrepancy? Also, if this is not a discrepancy, can you quote the Clause from ISBP proving this. Regards C.R. Nishanth —- ANSWER Hi, According to UCP 600 sub-article 14 (j), …

QUESTION Dear Mr. Old Man, At the beginning of the lunar new year, we wish you and your family good health, peace and prosperity. We would like to ask you to advise me on the following case: At the request of our customer (Applicant), our bank issued an MT 760 SBLC in favor of ABC Company (Beneficiary). The SBLC contains …

QUESTION Dear Mr. Old Man, Happy Lunar New Year! We have a question related to the bill of lading as follows, I hope to receive your advice:   Field 46A (Documents required) stipulates: FULL SET OF CLEAN ON-BOARD OCEAN BILL OF LADING IN 3/3 ORIGINAL NON-NEGOTIABLE, MADE OUT TO THE ORDER OF PT. BANK MANDIRI (PERSERO) TBK., MARKED FREIGHT PREPAID, …

QUESTION Dear Mr. Old Man, I ‘d like to ask you about rules or practice related to settlement process to beneficiary as follow: Related parties in the LC: Bank A: as issuing bank Bank B: as presenting bank Beneficiary C in the LC Can bank A remit directly to beneficiary C‘s account rather than transfer to bank B’s account indicating …

Intro In documentary credit practice, it is not uncommon to see LC requirements drafted with a strong “bill of lading mindset”, even when the mode of transport is air. One such recurring requirement is the presentation of an air waybill issued “to order” and blank endorsed. This raises an important question: Is such a requirement correct, and does it make …

  QUESTION Dear Mr. Old Man, So sorry to keep asking your opinion of these matters sir but can you please give me any suggestions when an applicant requests a duplicate insurance policy in the LC itself. So my question is: Is duplicate insurance policy even valid and can be used to make claims if need be? What about the original …

QUESTION Hi Mr. Old Man. A guarantee stipulates following conditions(part): The guarantor will pay beneficiary on receipt of XXX’s written demands made to the Bank stating that in XXX’s opinion the Vendor (a) fails to observe, perform or discharge any of its obligations under the Order or (b) becomes insolvent, bankrupt or go into liquidation or otherwise put in a …