Hi all,
I'm stuck up in a rather difficult situation with my client. We are the beneficiary of an irrevocable letter of credit. We have presented the documents necessary to the client for signatures and subsequent submission to the bank. They have all the documents required to be submitted to the bank in their possession but they just won't sign. The LC is soon to be expired. I would like to inquire how exactly we could protect ourself and guarantee our payment if the LC expires (and we have proof of performance).
Regards
Penalty to Applicant for LC Expiry
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ab8585
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Navi
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need clarification
Hi,
You are the beneficiary of the LC, I am confused, why you require signatures from your client? Client = Applicant?
Does the LC require documents countersigned by applicant?
If so, there is nothing you can do under the LC.
You are the beneficiary of the LC, I am confused, why you require signatures from your client? Client = Applicant?
Does the LC require documents countersigned by applicant?
If so, there is nothing you can do under the LC.
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ab8585
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Hi,
Yeah that's right, we are the beneficiary and our client is the applicant.
The advising bank tells us that there is no specimen signature sent to them by the issuing bank. According to them, any signature would be considered a valid signature if there is no specimen signature available. Is that true.
Doesn't it open doors for me to simply sign off and send the documents for presentation without consulting the applicant.
Yeah that's right, we are the beneficiary and our client is the applicant.
The advising bank tells us that there is no specimen signature sent to them by the issuing bank. According to them, any signature would be considered a valid signature if there is no specimen signature available. Is that true.
Doesn't it open doors for me to simply sign off and send the documents for presentation without consulting the applicant.
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dinesh2476
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Penalty to Applicant for LC Expiry
Hi,
Unless there is condition in the LC that signature in the documents must be validated with the specimen signature from the issuing bank, we are good to go ahead and claim the payment from the nominated bank. Nominated bank cannot just deny the payment simply because the documents states specimen signature/signature.
.
Regards- Dinesh Kumar.
Unless there is condition in the LC that signature in the documents must be validated with the specimen signature from the issuing bank, we are good to go ahead and claim the payment from the nominated bank. Nominated bank cannot just deny the payment simply because the documents states specimen signature/signature.
.
Regards- Dinesh Kumar.
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gegeeee
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Answer
If i understand correctly, LC includes one document among others, that has to be countersigned by the applicant.
This type of document is let's say delivery acceptance act signed by both parties.
My opinion is that it is bad structured LC, because that beneficiary has to count on applicant's honesty, if applicant does not sign such document, beneficiary can not present complying document and the result is non payment.
I had such a case in the similar structured case, where applicant went to bankruptcy and due to that fact did not sign that document, so bene did not get its money.
Best,
Gega
This type of document is let's say delivery acceptance act signed by both parties.
My opinion is that it is bad structured LC, because that beneficiary has to count on applicant's honesty, if applicant does not sign such document, beneficiary can not present complying document and the result is non payment.
I had such a case in the similar structured case, where applicant went to bankruptcy and due to that fact did not sign that document, so bene did not get its money.
Best,
Gega