WHERE THE APPLICANT REFUSES TO TAKE UP THE DOCUMENTS Yellow sand beach, Hai Van Pass QUESTION Dear Mr. Old Man, We appreciate your answer to the following case: At the request of the applicant, we issued an L/C fully secured by the applicant’s deposit account with our bank. The documents required for presentation including 3/3 original bills of lading made out to the order of our bank notify the … Read More
UCP 600 OR URC 522 QUESTION Dear Mr. Old Man, I have a question needing your help. We issued L/C No. xxx 123 in favour of Beneficiary B. The L/C was subject to UCP 600, but the documents were sent to us for collection. The covering schedule showed the following information: QUOTE We enclose the following documents for collection subject to the Uniform Rules for … Read More
ONE GUARANTEE ISSUED AGAINST TWO OR MORE COUNTER-GUARANTEES Mr. Old Man will get back here soon! QUESTION Dear Mr. Old Man, I am facing to a difficult case relating to bank guarantees subject to URDG 758. Please kindly give me your opinion. We have received two counter-guarantees (Counter-guarantee No. 1 and Counter-guarantee No. 2) from two different counter-guarantors instructing us to issue one bid guarantee for USD 1,000,000.00 … Read More
WHERE LC REQUIRES PRESENTATION OF A DOCUMENT TO BE ISSUED BY APPLICANT A Co Tu ethnic woman in Tay Giang – a mountainous district of Quang Nam, Vietnam QUESTION Dear Mr. Old Man, I have some stuff about an LC case that really needs your advice as follows: My customer is an importer and the goods in this case is an acetylene-producing machine. My customer wants to ensure that they only make … Read More
WHERE A BILL OF LADING INDICATES TWO DIFFERENT AGENTS Hunting gold in Nevada QUESTION Hi Mr. Old Man, I am checking a bill of lading. The on board notation is signed and indicates as follows: Shipped on board Argo 26-Sep-2016 CMA CGM AND ANL AGENCIES (NZ) LTD As Agents for the Carrier The bill of lading is signed and indicates as follows: Signed for the carrier ANL Singapore Pte Ltd … Read More
AMENDMENT TO EXTEND THE PRESENTATION PERIOD QUESTION Hi Mr. Old Man, Could you please help me with the following case: We are the beneficiary of a confirmed L/C available with the confirming bank by deferred payment. After shipment, we made a presentation to the confirming bank that refused to honour because one of the presented documents was discrepant. We could not replace the discrepant document with … Read More
A CASE REGARDING CUMULATIVE REVOLVING LC QUESTION Hey Mr. Old Man, Could you please help me in clarifying the answer of the following question: A credit is issued for the amount of USD15,000 and is stated to revolve monthly on an automatic and cumulative basis. The credit has a 9 months validity period. The following drawings are made in the first 5 months: January – USD12,500 … Read More
EXPIRED L/C QUESTION Hi Mr. Old Man, We have the following case relating to expired L/C. Our bank sent the issuing bank the documents under the L/C available with the issuing bank by acceptance. As the L/C expired, the issuing bank sent us a message informing that it treated the documents as a collection. Two weeks later, the issuing bank sent us … Read More
SUB ARTICLE 9 (d)_ADVISING OF CREDITS AND AMENDMENTS QUESTION Hi Mr. Old Man, We issue a LC through Bank A (first advising bank) stating Bank B as second advising bank in field 57A. We now have RMA with Bank B. Our customer requests us to issue amendments and advise them directly to Bank B. We are going to send an authenticated message to Bank A to ask for the … Read More
DECIMAL PLACES Dear Mr. Old Man, Good afternoon, today I have a short question about amount insured. According to para. K13, ISBP 745, “There is no requirement for insurance coverage to be calculated to more than two decimal places”. So, if amount of cover calculated is USD 100,000.156789, the amount should be shown in the insurance document is USD 100,000.16 or only … Read More