L/C stated that the B/L made out to issuing bank and notify party showing as third party.
So obviously the goods title should be transferred from shipper(beneficiary)->Bank->applicant->third party,
and IB should endorse the B/L to applicant after IB receive the documents, so isn't the B/L should be blank endorsed?
Why B/L cannot be blank endorsement when made out to order of Issuing Bank?
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TeaRun721
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Navi
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Re: Why B/L cannot be blank endorsement when made out to order of Issuing Bank?
Hi,
When receive credit conform documents including the B/L which was made out to order of IB, IB is expected to endorse the B/L to order of Applicant and deliver B/Ls accordingly. Later, if applicant is not the ultimate buyer, he may endorse it to the buyer. So, an additional endorsement of applicant will not be problem, I think. Maybe, instead of blank endorsement, IB may endorse directly to order of the third party named in the B/L according to applicant's instruction. Because banks would like to know the party on whose favor they are making endorsement.
Other comments appreciated
When receive credit conform documents including the B/L which was made out to order of IB, IB is expected to endorse the B/L to order of Applicant and deliver B/Ls accordingly. Later, if applicant is not the ultimate buyer, he may endorse it to the buyer. So, an additional endorsement of applicant will not be problem, I think. Maybe, instead of blank endorsement, IB may endorse directly to order of the third party named in the B/L according to applicant's instruction. Because banks would like to know the party on whose favor they are making endorsement.
Other comments appreciated