Urgent advice

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momo
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Urgent advice

Post by momo » Fri Dec 15, 2017 4:21 pm

Hello
We are Company based in china mainland

conclusion we have received an LC issued from Egypt bank and the sender is an germany bank Commerz bank .
Irrecovable transferable

in the LC term NO/41D : avaliable ...with by COMMERZBANK by payment
NO /46 A : this LC restricted with COMMERZBANK

and i am the beneficiary of the LC in china and my bank in china is ABC bank and they refuse to transfer this LC to my supplier based on those two points (mentioned above ) and they asked for change NO/41D & NO /46 A to
NO/41D : avaliable ...with by ANY BANK
NO /46 A : To be deleted .
plz advice us ASAP
thanks
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Navi
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Re: Urgent advice

Post by Navi » Wed Dec 20, 2017 1:12 pm

Hi,

Transfering bank should be nominated bank or in a credit available with any bank, a bank should be specifically authorized to transfer.

In your L/c commerzbank is authorized to transfer. If you want ABC bank to transfer, amendment required.

momo
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Re: Urgent advice

Post by momo » Tue Dec 26, 2017 4:29 pm

Thanks for your reply .I have another question can be available with by payment 2 banks name like this the commerzbank and abc bank and this case abc bank can transfer the credit ?

Seckman
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Re: Urgent advice

Post by Seckman » Sat Jan 06, 2018 9:50 pm

Hi Navi, what happens in this kind of a situation if the bank wasn't specifically authorized to transfer? Can the transfer still occur?

Navi
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Re: Urgent advice

Post by Navi » Fri Jan 12, 2018 4:35 pm

Hi friends,

Dear momo,
I have not come accross such an L/c available with 2 different banks . In my opinion, if you correctly express it in the Lc, it may be possible. Since LC can be issued available with "any bank by..." that means more than one bank may be nominated bank. However, LC must clearly contain terms to protect nominated banks/issuing bank/applicant to avoid honour of double/triple presentations that may be made by beneficiary for the same shipment.

Dear Secman,
If the l/c does not specifically authorize a bank to transfer the LC, then, that bank should not act as transfering bank and must seek an amendment from issuing bank.

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