Dear all,
few days back i issued a letter of credit in favor of a beneficiary in Thailand. however for some reasons the LC was advised through a a bank in Malaysia. the advising bank later become also the confirming bank and availability was restricted to the confirming bank through an amendment. i would like to know whether the confirming bank can nominate a bank in Thailand as its agent to perform the job of the confirming bank?
Availability of credit
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shahriar
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narisa
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availability of credit
dear Shahriar
I need to post in my view.In this case I think that i.b. have relationship with bank in Malaysia so i.b.issue l/c to adv bank in Malaysia and request them to add their confirmation (as l/c made available with conf bank) so bank in Malaysia act as 1st adv bank utilized service of 2nd adv bank in Thailand to adv l/c to bene ,which they merely act as 2nd adv bank only,when bene presents docs to 2nd adv bank so they act as presenting bank for sending docs to conf bank in Malaysia which l/c made available with and asked conf bank to honour,if docs complying presentation.
other comment appreciated.
I need to post in my view.In this case I think that i.b. have relationship with bank in Malaysia so i.b.issue l/c to adv bank in Malaysia and request them to add their confirmation (as l/c made available with conf bank) so bank in Malaysia act as 1st adv bank utilized service of 2nd adv bank in Thailand to adv l/c to bene ,which they merely act as 2nd adv bank only,when bene presents docs to 2nd adv bank so they act as presenting bank for sending docs to conf bank in Malaysia which l/c made available with and asked conf bank to honour,if docs complying presentation.
other comment appreciated.
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cristiand969
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Dear Shahriar
As a rule a nominated bank acts under instructions and authority of the issuing bank when honouring a complying presentation to beneficiary. If the credit is restricted to confirming bank this is the place where the credit expires and place where the negotiation is effected for the purpose of UCP 600.
Other situation which may exist: i.e outsurcing some Trade Finance activities (as agenty in Thailand in your case) or presentation by other ' nominated bank' are effected ' on behalf of beneficiary' and does not constitute nomination under UCP600.
Other situation which may exist: i.e outsurcing some Trade Finance activities (as agenty in Thailand in your case) or presentation by other ' nominated bank' are effected ' on behalf of beneficiary' and does not constitute nomination under UCP600.