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Transfer by Advising Bank
Posted: Mon Jun 29, 2009 11:37 pm
by bdesh
Hi Friends,
> Field 47A of an LC states transfer of the LC is restricted by the Advising Bank only.
A. LC sent to ABC Bank.
B. Field 57A: PQR Bank.
.
Who can transfer the LC?
A/ B/ A & B/ A or B?
Best Regards.
Transferable L/C
Posted: Mon Jun 29, 2009 11:54 pm
by picant
Hi Pals,
IMHO only B, being ABC per Swift rules only the receiver bank that has to pass the l/c by MT710 to the advising bank indicated in field 57 "This field identifies the bank, if different from the receiver,throgh which the documentary credit is to be advised/confirmed to beneficiary" .........Any other action is an abuse, specially made by big banks, but who can fight against them.
I take the opportunity to comment the today's thought. The second advising bank is choosen by the advising bank, not the issuing bank, as per art 9 c UCP 600. I consider the second advising bank the Trojan Horse, for a no-bank issuer to enter in the Swift system; Issuing party opens an l/c, its bank transmit it by MT 710 to the bank of beneficiary and the latter advises the beneficiary. Is it too complicated or.....
Other comments appreciated
Ciao