Draft Signed On Behalf Of The Beneficiary

tituisrt · Post by **tituisrt** » Wed Feb 25, 2015 10:17 pm

Hi,
I've found a draft that it is signed by X on behaf of the beneficiary.
Is it a discrepancy?
as per ISBP-745 B8 we know that only beneficiary can sign the draft.
Please some one help me.
If the draft is valid please explain.
Thanks

GUBAZ · Post by **GUBAZ** » Sun Mar 15, 2015 8:07 pm

Hi,

In my opinion, the draft not to be accepted under ISBP-745 B8

"A draft is to be drawn and signed by the beneficiary and to indicate a date of issuance."
Same paragraph explaines also following:

"When the beneficiary or second beneficiary has changed its name, and the credit mentions the former name, a draft may be drawn in the name of the new entity provided that it indicates "formerly known as (name of the beneficiary or second beneficiary)" or words of similar effect."

From the above paragraph, it can be infer that the draft should be issued by the beneficiary. The issuance occurs by the signature of it.

picant · Post by **picant** » Sun Mar 15, 2015 11:06 pm

Hi Pals,

draft if not required in the document listy(field 46 of MT700, p.e.) is not considered a discrepancy from UCP point of view.
It may be issue of correspondance between banks to adjust it, but cant stop the l/c process.
Discrepancy may be only lift on documents required and not to the way of obtaining payment, including draft or cover letter.
Other comments appreciated
Ciao

RAKESHCH · Post by **RAKESHCH** » Mon Mar 16, 2015 8:19 pm

Friend

Draft has to be signed by the beneficiary
.But if the beneficiary has changed its name the following can be applied
ISBP B8 B)
"When the beneficiary or second beneficiary has changed its name,
and the credit mentions the former name, a draft may be drawn in the
name of the new entity provided that it indicates “formerly known as
(name of the beneficiary or second beneficiary)” or words of similar
effect."

So as pointed out in the earlier comment Draft has to be signed the "BENEFICIARY"

felix · Post by **felix** » Thu Mar 19, 2015 12:54 pm

Hi

In case draft is called under the credit then it a discreapancy
In case draft is not called for then the draft is to be ignored even if discrepancies are noticed in it. (UCP Art 14g)

Regards

thutrang9591 · Post by **thutrang9591** » Sun Mar 22, 2015 3:09 pm

I think draft must be issued by beneficiary (or 2nd ben if transferable l.c), so it is discrepant.