dear sir,
we very often receives letter of credits with conditions that the presenting bank has to endorse on the reverse side of the credit and must certify it on the forwarding schedule. is any presenting bound by this clause? if such declaration is absent on the forwarding schedule, can the issuing bank refuse the presentation?
issuing bank must endorse on the reverse of the LC
-
jim
- Posts: 91
- Joined: Fri Aug 15, 2008 11:58 am
-
picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
famous Swift Handbook no 7
Hi Pal,
In Swift book cat. 7, but considering a good old practice, when speaks of MT700 is clear written:
-for freely negotiable documentary credits, if the receiver does not further transmit the credit by MT710, it must add sentences to the effect that:
-The advice to the beneficiary must be presented at each negotiation.
-The negotiating bank must note each negotiation on that advice.
Consequently, negotiating bank is requested to inform the issuing bank about that.
New problem: with UCP600 l/c could be issued "FREELY" by acceptance, payment, def payment too. Please inform Swift Management to amend instructions, if not already done.
Other comments appreciated
Ciao
In Swift book cat. 7, but considering a good old practice, when speaks of MT700 is clear written:
-for freely negotiable documentary credits, if the receiver does not further transmit the credit by MT710, it must add sentences to the effect that:
-The advice to the beneficiary must be presented at each negotiation.
-The negotiating bank must note each negotiation on that advice.
Consequently, negotiating bank is requested to inform the issuing bank about that.
New problem: with UCP600 l/c could be issued "FREELY" by acceptance, payment, def payment too. Please inform Swift Management to amend instructions, if not already done.
Other comments appreciated
Ciao