Bank requires original letter of credit

[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.

[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

[nesarul]

dear, i agree with picant and for further ref. R 518 might be logical to quote here. Nesar

[iLC]

i do not see it as a contradiction