Dear Friends,
Pls give your advice on the following question with thanks:
Bank A issue an L/C which is advise to Ben by Bank B. After that, applicant and Ben agree to amend the L/C. Bank A issue an amendment as appl's request and sending that amd to Bank B (advising bank) to advise Ben. However, Bank B decline its advising and also send msg to Issuing bank about its decline.
So, what should Issuing bank do for advising the amendment to Ben???
Request other advising bank? or directly advise to Ben???
(pls refer to UCP600, Sub-art. 9(d)
thks for your attention.
How Could An Amendment Advised To Beneficiary?
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LOAN
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picant
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Advising bank?
Hi Pal,
IMHO advising bank is the bank of the beneficiary, even if someone states that it is the bank choosen by the issuing bank(question of commissions, rebates and reciprical business)
In the first case it is very strange that the bank of beneficiary refuses to advise an amendment, if the amendment is legal and it is not hurt sensitive questions as dual use goods, sanctions , KYC AML etc
In the second case I will consider the bank in field 57 a, the advising bank and contact it directly. sending an MT999 and authorize such message via common friend bank or by letter, accompanied with specimen of signatures of the Board of directors or the like.
Let us know details of this issue. Ciao
IMHO advising bank is the bank of the beneficiary, even if someone states that it is the bank choosen by the issuing bank(question of commissions, rebates and reciprical business)
In the first case it is very strange that the bank of beneficiary refuses to advise an amendment, if the amendment is legal and it is not hurt sensitive questions as dual use goods, sanctions , KYC AML etc
In the second case I will consider the bank in field 57 a, the advising bank and contact it directly. sending an MT999 and authorize such message via common friend bank or by letter, accompanied with specimen of signatures of the Board of directors or the like.
Let us know details of this issue. Ciao
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saikumar1208
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Re: how could an amendment advised to Ben?
Amendment to be advised by the bank that which advises the credit. If advising bank declines to advise the amendment it should intimate the issuing bank and beneficiary. In the case described above beneficiary should get in touch with advising bank and confirm the reason for declining the advising and arrange amendment accordingly
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kmahdy
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Re: how could an amendment advised to Ben?
Dear Friend ,
we need to know the reason why the advising bank refuses to advise the lc ,
mostly it will have a very good reason not to do so , which issuing bank will consider and may take its decision to not advise the lc at all ,
if advising bank refusal is weak ,
issuing bank can contact other correspondent bank in the beneficiary's country to advise the l/c and they will need to close the first lc and then issue a new lc with the new advising bank
regards
we need to know the reason why the advising bank refuses to advise the lc ,
mostly it will have a very good reason not to do so , which issuing bank will consider and may take its decision to not advise the lc at all ,
if advising bank refusal is weak ,
issuing bank can contact other correspondent bank in the beneficiary's country to advise the l/c and they will need to close the first lc and then issue a new lc with the new advising bank
regards