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Dear Mr. Old Man,

We often issue LC available with any bank by acceptance but stipulate that the place for presentation is at the beneficiary's country. The beneficiary does not accept the place for presentation at the applicant’s country as he wants to control the time to present the documents at a bank in his country.

Is our stipulation acceptable?



LC available by acceptance would require presentation of tenor drafts which are to be drawn on the issuing bank or on a named nominated bank as the case may be. The expiry place should match the place where the LC is available.

It is understood from your description that your LC is available with any bank in the beneficiary’s country by acceptance of tenor drafts to be drawn on your bank (I guess so as drafts cannot be drawn on any bank).

I must say your LC is badly issued. However, it is acceptable with respect to time and place for presentation. With such stipulation, the beneficiary must present the documents to a bank in his country before or on the expiry date or the last day for presentation, and that this bank will not accept the documents and drafts but forward them to your bank (the issuing bank) for acceptance.

Kind regards,
Mr. Old Man

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  1. anonymous

    July 25, 2013 at 9:07 pm

    Anonymous writes:Hi Mr old man,I have a problem want to ask you.My bank issued a L/C available with any bank by negotiation, but the expiry place is at applicant’s country. The docs must be presented within 3 days from shipping date (ben’s country in India). Ben presented docs to his advising bank after 2 days from shipping date, but the required docs reached to my bank after the last day for presentation.So my bank raised the discrepancy “late presentation”. Was the discrepancy valid? Thanks for your consideration 


  2. mroldmanvcb

    July 26, 2013 at 10:07 am

    Badly issued LC!!!The place of presentation for negotiation should have matched the place of expiry. The beneficiary should have asked for an amendment as to this conflicting stipulation. Anyway, the discrepancy was valid (?), but the issuing bank should have stated correct discrepancy as “LC expired” instead of “Late presentation”.


  3. anonymous

    November 6, 2013 at 9:11 am

    Chan writes:Dear Mr. Old man,I have a question which I am still unclear about it.There is an LC which Applicant is in Israel, and The Beneficiary is in Thailand. LC is available with Israel Bank by Payment. The expiry date is also in Israel which is the applicant's country. The advising bank is ABC bank in Bene country.My question is what could ABC bank do beside advise the LC to Bene if the credit is only available with Applicant's bank? can the Bene present the document with ABC bank in his country or does he has to send all the document himself to the Israel bank where the credit is available and also the expiry place? can ABC bank arrange to send to present document to Israel bank? Thank you in advance for your value answer to my question.Best regards,


  4. mroldmanvcb

    November 6, 2013 at 4:11 pm

    Hi,As said in my original post, the expiry place should match the place where the credit is available. Where the credit is available with the issuing bank and the expiry place is in the issuing bank’s country, the documents must be presented to the issuing bank within the specified presentation period and in any case not later than the expiry date. UCP allows the beneficiary to present the documents directly to the issuing bank. However, it is advisable for the beneficiary to present the documents to the issuing bank via his/her bank (which could be the advising bank or not). This bank is called “presenter” or “presenting bank” that makes the presentation to the issuing bank on behalf of the beneficiary.So, to conclude, if requested by the beneficiary, ABC Bank can make the presentation to Israel Bank on behalf of the beneficiary. If this is the case, then ABC Bank is acting as a presenting bank.Hopefully it is clear enough.Kind regards,Mr. Old Man


  5. anonymous

    November 8, 2013 at 10:11 am

    Chan writes:Thank you Mr. Old man.Yes your explanation is very clear. Best regards,


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