QUESTION Dear Mr. Old Man, I would like to ask you about confirmed LC. Bank B are requested by iss bk to act as confirming bank. Let say tenor at sight and partial shipment allowed. Bank B advised the LC to bank C with adding confirmation. Then bank B received amendment , expiry LC from 25 Dec 20xx become 25 …

QUESTION Hello Mr.Nguyen, 1) In case of transferrable LC : What if the issuing bank , 1st beneficiary and second beneficiary all 3 are in 3 different countries , how will the payment be processed ? As per the clause put by issuing bank is credit available with any bank in 1st beneficiary country, what if second beneficiary requests for …

QUESTION Can an LC be issued  in favour of several beneficiaries ? ——— ANSWER Hi, Never during my 20 years involved in LC world have I seen LC issued in favour of multiple beneficiaries. Some experts claim it is possible to issue one LC in favour of more than one beneficiary, especially when it is a standby LC, but they …

QUESTION Dear Mr. Old Man, I just saw your blog and found it great. However I was trying to find a answer to a question I am having. I am from sellers side. We have a buyer who has opened LC to us from his bank In Indonesia. Our Bank is in Sri Lanka Buyers bank is local Indonesian bank …

QUESTION Sir, I want to know, if the documents on DP term are sent with clear instruction to release only against Payment. If the collecting bank has released all shipping documents along with endorsed in favor of consignee without collecting payment (good faith), what are the obligations and responsibilities of the collecting bank ? Can the remitting bank claim from …

QUESTION Dear Mr. Old Man, When the LC only indicates UCP 600 as governing rule but not ISBP, should a bank also make references to ISBP provisions in addition to UCP when checking documents to determine clean/discrepant? Please also advise on what other occasions do we use ISBP. Thanks. ————– ANSWER Hi, According to the introduction of ISBP, the international …

QUERY LC requires a certificate of vessel’s tank cleanliness. Beneficiary presents a document with exactly the same title, showing content as follow: Quote Method of Cleaning : No tanks cleaning was carried out. Unquote Is this document complying? Noting sub-article 14(f), the question is whether its content appears to fulfill the function of the required document. Can I have your …

QUESTION Dear Mr. Old Man, Please help me solve the following issue: With regard to sub article 7c in UCP 600, “An issuing bank’s undertaking to reimburse a nominated bank is independent of the issuing bank’s undertaking to the beneficiary”, the statement does not clarify which “independent” is. Question 7.7 in FAQ under UCP 600 explained this statement as suggested …

QUESTION Dear Mr. Old Man, I understand that sub-article 6 (a) UCP 600 allows the beneficiary to present the documents directly to the issuing bank. However, I want to know how the issuing bank give the notice of refusal to the beneficiary in case the presented documents contain discrepancies. Thank you for your advice Best regards, L.L —– ANSWER Hi, …

Dear Mr. Old Man, Could you give me your opinions about controversy issues that I meet during processing documents? COLLECTION:   We have received under a D/A collection a set of documents including drafts at 60 DAYS AFTER SIGHT.   Do we calculate the maturity date from the day we receive the above documents for collection or from the day …