Best Trade Solution

This is in reference to CDcs Practice test No.3.

1) Credit Issued on 1.10.2008. Tenor 30 days after Sight
2) presented docs to confirming bank on 1.11.2008.
3) Confirming Bank acceptance on 1.11.2008.
4) Issuing Bank acceptance communicated on 05.11.2008.

What is the Maturity Date ???

My answer was 02.12.2008, but the CDCs program answer was 01.12.2008

My calculation was according to Article 3 (The words ''from'' and ''after'' wgeb used to determine a maturity date exclude the date mentioned).

But the program included this date I assume. kindly Help.

hi!

i calculated in this way.

document was presented on 1st November. that means i need to calculate from 2nd November.

2nd to 10th November 9 days
11th to 30th November 20 days
1st December 1 day

total 30 days. so think its ok.

But its 30 days after sight, we means totalling 31 days, Am I right?

If docs presented to Conf Bank on 1.11.2008, and tenor is 30 days after sight.

This means that if for example the tenor was 30 days sight(without after), then the sight here is the presentation date of docs(i.e. 1.11.2008), then this is 29 days from Nov, and 1 day from December, this makes the Maturity date 1.12.2008.

Hence, this means that if as per my question the tenor is 30 days after sight, it should have been 2.12.2008 and not like what the exam say?

More explanation is most appreciated.

Regards

I think 01.12.2008 is the right answer .

hi
the answer is 01/12/08.tenor is "30days after sight".sight happend on 01/11/08,then we have only 29days left in november.so,the 30th day is 01/12/08 and it is deemed to be the maturity date.



malla

Dears,

I got your point, But your calculation is like when the tenor is 30 days sight and not 30 days after sight.

please clairfy.

the answer is same in both the cases. ISBP

46. For drafts drawn "at XXX days sight", the maturity date is established as follows:
a. in the case of complying documents, or in the case of non-complying documents where the drawee bank has not provided a notice of refusal, the maturity date will be XXX days after the date of receipt of documents by the drawee bank.

Sorry expoerts, I am confused just like warlords777, cos I also took the test and made same mistake as him...and seems the answers here are still not very clear. so kindly enlighten us:

Here again, the UCP600 article: The words "from" and "after" when used to determine a maturity date, EXCLUDE
the date mentioned.

so which date is the UCP referring to as EXCLUDED? Is it the first date, which in this case is 1-11-2008?
or is it the last (30th day) date which is this case will become 30th November, (if we don't exclude the 1-11-2008)

seems to me that we must exclude 1 day, if we exclude 1st nov, then the last day of the tenor will fall on 1st December
to complete the total of 30 days, thereby fulfilling the requirements" 30 days AFTER sight". So docs were sighted on 1st,
30 days wait for the tenor. 1st December being he last day of the 30 days period. 2nd December being maturity date.

so what are we missing. is UCP wording confusing us?

We need a clear solution , and when you do, dont forget to explain it !

Hi all

Just an idea - look at the following website/link
http://www.timeanddate.com/date/dateadded.html you may type in the day of acceptance ie 1 nov and add 30 days and the answer will be shown as 1 Dec.

Thanks
Jackie

This website not as per ucp600 !

why dont take help from ISBP

b. As an example of where it is possible to establish a maturity date from the data in the draft, if a credit calls for drafts at a tenor 60 days after the bill of lading date, where the date of the bill of lading is 12 July 2007, the tenor could be indicated on the draft in one of the following ways:
v. "10 September 2007", i.e., 60 days after the bill of lading date.

Then when we say 30 days after sight, we calculate as follows ( 30-1 from November ) = 29, and one day from December totalling in 30 days (i.e. 1 December), which means we exclude the date mentioned.

Then this case indicate that if the tenor for example was 30 days sight, then what is the maturity date?

lets make its straight. there is no differences between 30 days sight and 30 days after sight. its the rule

Yes. I agree. Rule is the rule.

Rgds,
akomolpa

in our country there is a saying in calculation maturity or interest period
"counting begining date then dont count the ending date,or counting ending date then don't count begining date'