Uncategorized CURRENCY CHANGE IN TRANSFERRED LC By Mr Old Man Posted on March 5, 2013 1 min read 10 0 3,661 Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr QUESTION Dear Mr. Old Man, Pls kindly advise if the currency on transferable L/C can be different or not. For example: We open transferable L/C to our consignee in VND, but then they transfer to manufacture in Europe in EUR. I hope so much to receive your soonest advise. Thank you so much! V-Acura————ANSWER Dear V. Acura, I remember having ever answered the same question as yours.Sub-article 38(g) allows the L/C amount to be reduced but does not allow to change the currency code. So, the answer is "No". Just imagine what happens if the 1st beneficiary fails to substitute its own invoice dand draft and the transferring bank must present the documents (including invoice in EUR)as received from the 2nd beneficiary to the issuing bank. So, no, no, no. Best regards,Mr. Old Man
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?
IS THE NOMINATED BANK REQUIRED TO VERIFY WHETHER THE BENEFICIARY HAS AUTHORIZED THE PRESENTING BANK TO PRESENT THE DOCUMENTS?
CAN THE ISUING BANK CITE “LATE PRESENTATION” AS A DISCREPANCY SOLELY BASED ON THE DATE OF THE COVER LETTER?