Amendment of a transferred credit

[Sharif]

Dear All
Will appreciate comments on the below situation.
.
MT-700 issued by ABC Bank which is transferable
Beneficiary – XYZ Limited
Unit price – USD1.00/PC
Total Quantity – 100 PC
DC value – USD100.00
.
DC transferred by EFG Bank through MT-720
Second Bene – IJK Limited
Unit price – USD0.80/PC
Total Quantity – 100 PC
DC value – USD80.00
.
Now the First beneficiary request IJK Bank to amend the DC to increase the value to USD0.90/PC.
.
Does the transferring bank has any right to amend the DC?
.
Regards
Sharif

[picant]

Hi Pal,

IMHO, I think that first beneficiary could modify details of the transferred DC within the originary DC terms under approval of second beneficiary.Think to the scenario, second beneficiary refuses and sends back the L/C, and first beneficiary instructs the bank to (re) transfer the L/C for a higher amount to the same beneficiary.

Sorry is I am not so clear.

Comments appreciated

Ciao

[cristiand969]

Dear All
Does the transferring bank has any right to amend the DC?
Regards
Sharif

.
Actually this is not a amendment to the credit but merely a subsequent instruction as far as the transferred L/C is concerned in accordance with art.38g.
Since the L/C acurately reflects the terms and conditions of the credit with the exception of the amount and unit price it is not regarded as an amendment .