A Hybrid Revolving Documentary Credit

[ismailgzr]

Hi all from members,

I need your profesionnal opinions about a revolving L/C.

Let me tell you conditions of subject L/C first:

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47A:
+THIS L/C SHALL REVOLVE AUTOMATICALLY FOR THREE TIMES UPON UTILIZATION OF THE CREDIT AMOUNT, UP TO TOTAL UTILIZATION AMOUNTS REACHES USD4.000.000,00 AND SHIPMENT PERIODS FOR EACH UTILIZATION WILL BE AS FOLLOWS:

FOR FIRST UTILIZATION, PERIOD OF SHIPMENTS MUST BE EFFECTED LATEST BY 30.11.2014.
FOR SECOND UTILIZATION, PERIOD OF SHIPMENTS MUST BE EFFECTED LATEST BY 31.01.2015.
FOR THIRD UTILIZATION, PERIOD OF SHIPMENTS MUST BE EFFECTED LATEST BY 31.03.2015.
FOR FOURTH UTILIZATION, PERIOD OF SHIPMENTS MUST BE EFFECTED LATEST BY 31.05.2015.
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This may seem a "hybrid" revolving l/c which either amount or time dependent but is not cumulative. However, beneficiary thinks he may not be able to complete first period of shipments before 30.11.2014.

In this case, beneficiary request a wording which will allow him to effect remaining shipments of previous period in subsequent periods.

I need your advice, thanks for your time..

Best Regards

[dinesh2476]

Dear ,

Please get an amendment from Issuing bank for reschedule. The issue cannot be solved between nominated bank and the beneficiary. It is the responsibility of the beneficiary to check the LC thoroughly before shipment, In case he finds any difficulties in adherence to the LC terms, in order to avoid issue in future, he must contact issuing bank through nominated for amended LC terms.

Thanks&Regards
Dinesh

[ismailgzr]

Thank you dinesh
But l/c is not issued yet.
Beneficiary made a contract with applicant and does not want to extend latest shipment date of first period.
It is an interesting case.