GENERAL PRINCIPLE- NATURE OF STANDBYS

The forum is dedicated to all who deals with LCs. Please share your experiences, problems and opinions with us. You are requested to be confined to LC related issues only. Let us together discover the beauty of Letter of Credit. Thank and regards – admin; besttradesolution.com
Post Reply
dinesh2476
Posts: 721
Joined: Sat Oct 15, 2011 12:27 pm
First Name: Dinesh Kumar
Last Name: ...
Organization: Chrome
Filter: Two Plus Two =: 4
Location: PU

GENERAL PRINCIPLE- NATURE OF STANDBYS

Post by dinesh2476 » Mon Nov 14, 2022 3:15 pm

Hi Experts,

We seek your support.

b. because a standby is irrevocable, an issuer's obligations under a standby can not be amended or canceled by the issuer except as provided in the standby or as consented to by the person against whom the amendment or cancellations is asserted.

can you help me to understand the term WHOM is being referred to whom ---
  • any advisor or
    any conformer or
    any nominated person acting on its nomination
    or the beneficiary?
Thanks & Regards
Dinesh Kumar

User avatar
picant
Posts: 2013
Joined: Wed Aug 20, 2008 1:49 pm

Re: GENERAL PRINCIPLE- NATURE OF STANDBYS

Post by picant » Mon Nov 14, 2022 3:50 pm

Hi Pal,

under UCP 600, an amendment must be accepted by the beneficiary or the eventual confirming bank.IOther comments Other comments appreciated
Ciao

dinesh2476
Posts: 721
Joined: Sat Oct 15, 2011 12:27 pm
First Name: Dinesh Kumar
Last Name: ...
Organization: Chrome
Filter: Two Plus Two =: 4
Location: PU

GENERAL PRINCIPLE- NATURE OF STANDBYS

Post by dinesh2476 » Mon Nov 14, 2022 6:11 pm

Hi Picant,

Thanks. UCP is very clear

However. ISP is not clear with regard to the cancellation proposed by the issuer. So for example, there is an involvement of the advisor, confirmer, and beneficiary. When the issuer request a cancellation, does the issuer need to seek consent from the advisor as well?

Thanks & Regards
Dinesh Kumar

User avatar
picant
Posts: 2013
Joined: Wed Aug 20, 2008 1:49 pm

Re: GENERAL PRINCIPLE- NATURE OF STANDBYS

Post by picant » Mon Nov 14, 2022 8:27 pm

Hi Pal,

reading point 2.06, 7,01 IMHO it seems working the same as UCP 600, except in 7.02 where more actions are required.
I have little experience about ISP98 as opinions are not issued by ICC.
Other comments appreciatd
Ciao

Post Reply