Amendment after clean presentation

[Oilguy]

I already presented docs and received issuing bank acceptance, just waiting for due date. Is it still possible for buyer to extend maturity date now by amending lc? I think most likely buyer lack of funds, but any advise appreciated.. Clearly not a normal request at this point.

[Sanaur]

Hi Oliguy

Yes, it is possible if issuing bank and beneficiary agrees. This happens very often in real situations.

As LC has already been honored by issuing bank by accepting, there exists no credit.

Thus, this happens without the scope of UCP i.e. no amendment is required but through other communications (preferably SWIFT free format and even in email if banks are branches of a same bank).

Regards

[Navi]

Hi,

It is possible to extend the maturity if the parties aggree on the new maturity, however, it may be not like an amendment. The issuing bank may send an authenticated message (MT799) and seek consent of beneficiary ( and nominated bank/confirmaing bank if any) for the new date. This is not an unusual case, sometimes, as you mentioned, applicant may be in difficulty providing the funds on time for the l/c and make a request.

[Oilguy]

Thank you all for the helpful comments. Yes no amendment was needed so i proceed the steps as suggested here with no irregularity. Although its true that buyer may have trouble presenting funds.

[TaiOanlan]

It`s possible, but banks hate that kind of situation which create extra job.