Hi to everyone,
could somebody please help me with the meaning of the clause: we have duly endorsed the amount of documents on the back of the credit. Does that mean - we have incurred our irrevocable deferred undertaking for the amount of documents, therefore asking for the protection of art 7c of UCP 600? or something else
thank
regards
Snježana
We Have Duly Endorsed The Amount Of Documents On The Back Of The Credit
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MIA19
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- First Name: SNJEŽANA
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picant
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Old action, still required..
Hi Pal,
when banks used paper instead of swift message, in case of freely negotiable letter of credit, bank noted the availment on the back of l/c, specially when partially utilized. Beneficiary could avail the balance with another bank.
However Swift Guide book 7, stated in the usance rules that the advising bank of a freely negotiable credit had to advise beneficiary to present the advice with documents and to note the availment on the back of the l/c (hard copy of swift MT700 or MT710/MT720. In the meantime UCP600 permitted freely payable and acceptable l/c.
Then ICC approved Opinion TA806 rev, that in some way prohibited or considered old practice this notation.
However the usance rules by swift still require such notation.
So the sentence just means that in case of freely available l/C, specially, i dare say, by negotiation , the original advice must be presented with documents, and noted on the reverse with the amount negotiated or better availed.
Sorry for the long answer but i had a long discussion with othe collegues , Swift and ICC must agree in many transaction and not only in BPO.
Ciao, hoping to have been clear, naturally, waiting for other comments.
when banks used paper instead of swift message, in case of freely negotiable letter of credit, bank noted the availment on the back of l/c, specially when partially utilized. Beneficiary could avail the balance with another bank.
However Swift Guide book 7, stated in the usance rules that the advising bank of a freely negotiable credit had to advise beneficiary to present the advice with documents and to note the availment on the back of the l/c (hard copy of swift MT700 or MT710/MT720. In the meantime UCP600 permitted freely payable and acceptable l/c.
Then ICC approved Opinion TA806 rev, that in some way prohibited or considered old practice this notation.
However the usance rules by swift still require such notation.
So the sentence just means that in case of freely available l/C, specially, i dare say, by negotiation , the original advice must be presented with documents, and noted on the reverse with the amount negotiated or better availed.
Sorry for the long answer but i had a long discussion with othe collegues , Swift and ICC must agree in many transaction and not only in BPO.
Ciao, hoping to have been clear, naturally, waiting for other comments.