Help On CDCS Test Questions And Answer

CDCS2015 · Post by **CDCS2015** » Wed Mar 30, 2016 2:17 pm

Hi All:

I need some helps here to answer the below questions which I find puzzling:

My answers is in bold below. for question 3, I completely have no idea.

1. Which of the following points is correct under a transferable standby ?

A)It can be transferred only by operation of law.
B)It cannot be transferred more than once.
C)It cannot be transferred in part.
D)It_cannot_be_transferred_if_it_states_"Assignment_is_prohibited"

2. The credit is silent on payment of freight;
goods description includes CIF.
In this case the presented B/L ;

A)must_indicate_'Freight_prepaid'_(or_paid)Ǥ
B)may_not_show_'Freight_prepaid'_and_this_is_acceptable
C)may_show_"Freight_Collect"
D)is discrepant if it has no indication regarding payment of freight.

3. Under_a_revolving_credit_the_issuing_bank's_maximum_liability_is_dependent_uponǡ

A)whether the credit is cumulative or not.
B)the value of each revolvement.
C)the revolvements being automatic.
D)the availability being with the issuing bank.

4.The credit is available with Bank X by negotiation of a draft at 30 days sight drawn on the
issuing bank. Bank C confirms the credit. Documents are found compliant by both banks. The
start date to determine the due date would be the date of;
A) Receipt of documents by Bank X because it negotiated.
B) Receipt of documents by Bank X because it is the confirming bank.
C) Sighting of documents by the issuing bank.
D) Acceptance of the draft by the issuing bank after examination period of max five
banking days.
E) None of the above is correct. This credit is badly issued. It should have stipulated the
drafts to be drawn on Bank X which is to act as the confirming bank.

5. The credit is available with Bank C by def payment,
Bank C confirms the credit and advises it to the Beneficiary through Bank D
Beneficiary presents his comply documents and request a discount from the confirming bank
Which of the following is applicable and correct under UCP 600?
A) Bank D can make a discount upon request of the beneficiary
B) Bank C can make a discount without a further authorization from the issuing bank.
C) Bank C can make a discount only after receipt a separate authorization from the issuing bank
D) Bank D make a discount upon request of the beneficiary and an authorization of the
Issuing bank

6. ISBP says_that_"The_transport_document_must_not_indicate_that_shipment_or_dispatch_has_
been_effected_by_only_one_mode_of_transportǤ"_
Does that mean to state that;
A) The document must contain the statement that shipment has not been effected by only
one mode of transport?
B) The modes of transport actually occurred must be shown on the document?
C) The document must not show that journey of goods is performed by either of the sea,
land, or air only?
D) The document must indicate that at least one mode represents land transport?

7. The credit requires an insurance document for 110 pct of invoice value, endorsed in blank. The presented insurance document contains insurance cover for 112 pct and shows the assured party as the applicant. Which of the following is correct?
A) The presented document is acceptable because the applicant is the assured party as
originally intended.
B) The presented document is not acceptable because it is for 112 pct instead of 110 pct.
C) The presented document is not acceptable because of the lack of endorsement by the
nominated bank.
D) The presented document is discrepant because it does not satisfy the credit term in
regard to the insurance document.

8. The credit which is available with the issuing bank includes the condition_"Documents_to_be sent in one lot by courier ABC. The advising bank sends documents in two lots by courier XYZ. First lot is received by the issuing bank before the expiry date and second lots is received
after the expiry date. Which of the following is correct?
A) The presentation is discrepant because documents were sent in two lots instead of one.
B) The presentation is compliant because in the end both lots were safely received.
C) The presentation is discrepant because second lot was received after expiry date.
D) The presentation is discrepant because documents were sent via Courier XYZ instead of Courier ABC.

picant · Post by **picant** » Wed Mar 30, 2016 5:14 pm

1-B tranferred only once

2-B may not show Freight prepaid (not conflicting with description of goods CIF)

3-B

4-E

5-B

6-A

7-A (ISBP H 21 a-silent..)

8-C -Documents must reach issuing bank( where available) in full before or on expiry date.

Let me know:

PS These questions are indirect and difficult to understand for no native english speaker!!!!!

gegeeee · Post by **gegeeee** » Fri Apr 01, 2016 1:38 pm

1.C (Transferable SBLC can may not be partially transferred, but may be transferred more than once. Rule 6.02b)
2.B
3.B
4.E
5.B
6.A
7.A
8.C (Definitely C. It is available with issuing bank. article 35 is not operative in such case )

picant · Post by **picant** » Sat Apr 02, 2016 5:48 pm

Hi Pals,

answer 1, for me under UCP600.

Ciao

gegeeee · Post by **gegeeee** » Mon Apr 04, 2016 12:08 pm

Hy all,

Dear Picant what is your opinion, i think we need here an additional info whether SBLC is covered under UCP600 or ISP98 in order to asnwer correctly?

Gega

picant · Post by **picant** » Mon Apr 04, 2016 5:43 pm

Hi Pal,

I have a note that theoretically a SBLC under UCP600 may be transferable!
Ciao

mohsen · Post by **mohsen** » Wed Apr 13, 2016 12:16 pm

hi. i want to know why some sellers want two advising banks in lc? what is the philosophy of using two advising banks in lc?

shafi865 · Post by **shafi865** » Fri Mar 31, 2017 3:12 pm

1) C
2) A
3) C
4) C
5) B
6) C
7) A
8) D