HI EVERYBODY,
CASE 1: -
> AN IRREVOCABLE TRANSFERRABLE LC WAS ISSUED IN FVG OF ABC COMPANY.
> ABC COMPANY TRANSFERRED THE LC IN FVG PQR COMPANY.
> THE APPLICANT REQUESTS THE IB TO AMEND THE LC FOR CHANGING 1ST BENE TO MNO COMPANY.
QUESTION : -
CAN THE IB ISSUSE SUCH AN AMENDMENT BEFORE BEING CONFIRMED THAT THE LC WAS NOT TRANSFERRED?
.
CASE 2: -
> AN IRREVOCABLE LC WAS ISSUED IN FVG OF ABC COMPANY.
> AN AMENDMENT WAS ISSUED FOR CHANGING BENE TO PQR COMPANY.
WILL THE ADV BANK CALL BACK ORG LC & AMENDMENT FROM ABC COMPANY TO FURTHER ADVISE TO PQR COMPANY OR IT IS ABC COMPANY'S RESPONSIBILITY TO HANDOVER THE SAME TO THE PQR COMPANY?
THANKS
AMENDMENT OF BENEFICIARY'S NAME & ADDRS
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bdesh
- Posts: 56
- Joined: Sat Jun 20, 2009 3:01 pm
- First Name: Hafizur
- Last Name: Rahman
- Organization: Southeast Bank Ltd
- Filter: Two Plus Two =: 4
- Location: Dhaka
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nesarul
- Posts: 513
- Joined: Sun May 18, 2008 9:46 pm
- First Name: Nesarul
- Last Name: Hoque
- Organization: Mutual Trust Bank
- Filter: Two Plus Two =: 4
- Location: Bangladesh
Beneficiary name changes
Dear,
Case One:
Issuing bank can start any game from its own house but the question whether it is acceptable to another house namely transferring bank and first beneficiary is a big question and solely depending upon the situation, like mentioned below.
Here cite an logical[to me] example:
Issuing Bank = A
Applicant = B
Transferring Bank = C
First Beneficiary = D
Credit value = USD100
partial shipment allowed.
D approached C to transfer and transfer equivalent USD50 to X and Y.
Later on D merged. with Z and renamed Q.
In consequent of above, D may request to B subsequently A to amend the first beneficiary as Q instead of D.
. I think logical so possible to me... But probably not in general situation.
Under general situation issuing bank should conduct with the applicant first to know the logical reason following by transferring status of transferring bank.....
.
Case Two:
Issuing bank can request the advising bank either within the amendment or separate message to call back the original L/C from the old beneficiary and advise then same along with the amendment to new beneficiary.
For more security its better to have an non utilization of L/C undertaking from the old beneficiary followed by an indemnity from the applicant.
regards
nesar
Case One:
Issuing bank can start any game from its own house but the question whether it is acceptable to another house namely transferring bank and first beneficiary is a big question and solely depending upon the situation, like mentioned below.
Here cite an logical[to me] example:
Issuing Bank = A
Applicant = B
Transferring Bank = C
First Beneficiary = D
Credit value = USD100
partial shipment allowed.
D approached C to transfer and transfer equivalent USD50 to X and Y.
Later on D merged. with Z and renamed Q.
In consequent of above, D may request to B subsequently A to amend the first beneficiary as Q instead of D.
. I think logical so possible to me... But probably not in general situation.
Under general situation issuing bank should conduct with the applicant first to know the logical reason following by transferring status of transferring bank.....
.
Case Two:
Issuing bank can request the advising bank either within the amendment or separate message to call back the original L/C from the old beneficiary and advise then same along with the amendment to new beneficiary.
For more security its better to have an non utilization of L/C undertaking from the old beneficiary followed by an indemnity from the applicant.
regards
nesar