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Bank requires original letter of credit
Posted: Sat Jun 13, 2009 10:00 am
by jabra
we have received a letter of credit in which partial shipment is allowed but there is also a condition that the presented document must accompany the original credit. we consider this clause conflicting. your opinion please.
clarification needed
Posted: Sat Jun 13, 2009 5:39 pm
by picant
Hi Pal,
I understand that original l/c must be presented to the bank, that is nominated to avail the l/c same.Normally, in case of partial shipment, this original l/c must be presented and the bank will endorse for such amount the back. In the famous Swift book n. 7, it is written that the bank advising an L/C available with any bank, must clause the advice as follows:
-The advice to beneficiary must be presented at each negotiation.
-the negotiating bank must note each negotiation on that advice.
Those notes refer to "negotiabkle l/c" but with UCP 600, an l/c could be available with any bank, for payment, deferred payment and acceptance too.
So try to clarify and insert more details.
Thanks
Ciao
original credit
Posted: Sat Jun 13, 2009 10:43 pm
by nesarul
dear, i agree with picant and for further ref. R 518 might be logical to quote here. Nesar
no contradiction
Posted: Mon Jun 15, 2009 9:27 pm
by iLC
i do not see it as a contradiction