QUESTION
Dear Mr. Old Man,
I have a question that needs your help.
LC issued by AGRIBANK requires “BL made out to order of AGRIBANK ”
BL presented was made out to the order of BNP PARIBAS (SUISSE) SA, which endorsed the BL to the order of ABM AMRO BANK, which endorsed the BL to the order of OTTO STANDTLANDER GmbH, which endorsed the BL to the order of AGRIBANK .
Is the BL acceptable?
Can AGRIBANK endorse the BL to the order of the applicant to enable him to take delivery of the cargo?
Will the applicant have any difficulty in taking delivery of the cargo?
Thank you very much.
T.
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ANSWER
Hi,
The BL with such endorsements is acceptable. AGRIBANK can endorse the BL to the applicant or to the order of the applicant who will have no difficulty in taking delivery of the cargo.
For your reference, here below is ICC Opinion R578 / TA567rev :
The credit requested that bills of lading be issued to the order of the issuing bank or endorsed to its order. The fact that the bill of lading may show, on its face, a different order party is not considered a different consignee if the bill of lading is duly endorsed by that party to the issuing bank. On this basis, there is no discrepancy.
Kind regards,
Mr. Old Man
