Dear DC Experts,
To start with I would like to express my pleasure to share you as a new member in this forum hopefully to gain benefit from your thorough experience of "best trade".
Further more;
I understand that the applicant is not apart to the L/C then, why the amendments to any L/C come through applicant?
Why not the beneficiary route his required amendments directly through nominated bank to the issuing bank?.
Is the issuing bank obliged to consult the applicant with regard to any amendments?.
Regards,
Ghubshawi
Should Issuing Bank Consult With Applicant About Amendment?
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ghubshawi
- Posts: 30
- Joined: Tue Jun 24, 2008 12:51 pm
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shahriar
- Posts: 923
- Joined: Fri May 16, 2008 1:03 am
- First Name: Shahriar
- Last Name: Masum
- Organization: Mutual Trust Bank
- Filter: Two Plus Two =: 4
- Location: Bangladesh
Re: Route of the amedments
dear Ghubshawi,
let me share a experience with you. few days back, i got an local LC from a bank subject to UCP600. it was an usance one. however the reimbursement clause therein was in the line of present circular of the central bank. so called up the bank and asked for an amendment.
the answer was "can we do that without the consent of the applicant". please note that its a reputed international bank.
its a reimbursement clause crying out loud. why do they need the consent of the applicant? the simple answer is, though UCP says applicant is not a party, but its the applicant who pays the money. so banks do care about them.
perhaps for this attitude of the bankers, the beneficiary asks the applicant for any amendment.
another possible reason is the easy access. its much easier for the beneficiary to reach the applicant than the issuing bank.
as far as ucp is concern,
one more thing, sometime i do refuse amendment request from my applicant if i found them against the UCP or interest of my bank.
regds
shahriar
let me share a experience with you. few days back, i got an local LC from a bank subject to UCP600. it was an usance one. however the reimbursement clause therein was in the line of present circular of the central bank. so called up the bank and asked for an amendment.
the answer was "can we do that without the consent of the applicant". please note that its a reputed international bank.
its a reimbursement clause crying out loud. why do they need the consent of the applicant? the simple answer is, though UCP says applicant is not a party, but its the applicant who pays the money. so banks do care about them.
perhaps for this attitude of the bankers, the beneficiary asks the applicant for any amendment.
another possible reason is the easy access. its much easier for the beneficiary to reach the applicant than the issuing bank.
as far as ucp is concern,
there is no scope for applicant here. but as a banker, i will consult the applicant to check whether the amendment will harm the interest of my applicant.a. Except as otherwise provided by article 38, a credit can neither be amended nor canceled without the agreement of the issuing bank, the confirming bank, if any, and the beneficiary.
one more thing, sometime i do refuse amendment request from my applicant if i found them against the UCP or interest of my bank.
regds
shahriar
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Md.zakir Hossen
- Posts: 129
- Joined: Tue May 20, 2008 10:14 pm
Re: Route of the amedments
dear Ghubshawi.Welcome to this forum.
I go throug a article of T.O.Lee about "how to become an L/C expert". where he mentioned 41 Point on different issue.Interesting is that he only says one point abou UCp.And that is
o Not Over relay on UCP."So think.
Why Applicant is not a party of the credit.Everything Issuing Bank do is for Applicant.
I go throug a article of T.O.Lee about "how to become an L/C expert". where he mentioned 41 Point on different issue.Interesting is that he only says one point abou UCp.And that is
o Not Over relay on UCP."So think.Why Applicant is not a party of the credit.Everything Issuing Bank do is for Applicant.