Rationale Of Having The Place Of Expiry At The Counters Of The Beneficiary Bank

[mike1]

what is the rationale of having the place of expiry at the counters of the Beneficiary bank or Applicant bank? thanks

[cristiand969]

For short, there are two important things to consider when choosing one place of expiry or another :
1. The place of expiry is usually the place of presentation which in case of benef's country he can get advantage of:
- more time to present documents (if credit expires at issuing bank counters benef has to consider a couple of days before expiry date for presenting /dispatching docs so as the they would timely reach to issuing bank on or before such expiry date
- eliminating risk of credit expiration when docs are delayed in transit from benef's bank to issuing bank
- benefs and negotiating bank can benefit of provisions of art.35 - docs lost in transit
2. The applicable law in case of any dispute is generally the place of payment. Consequently, the jurisdiction of a court for a credit available with a nominated (benef's) bank is the country of that nominated bank.

[L59099]

it should be the expiry place at the ben's country for their presentation of docs