Applicant of the Credit

[bdesh]

Hi everybody,
.
Point 1: Regulatory authority of country C has authorised institute A to transfer LC where LC applicant is PQR company, Switzerland.
Point 2: An LC received by us (Advising Bank) where LC Applicant is as follows: -
"ABC company on behalf of
PQR company
Switzerland"
.
Question: -
Would it be violation of point 1 if the LC be transferred by institute A in terms of Applicant of the Credit?
.
Regards.

[picant]

Hi Pal,

we need more details

thanks

Ciao

[bdesh]

Hi picant,
Thanks for ur reply.
.
Would u plz mention which details r required to answer?
.
Thanks

[picant]

Hi Pal,

details in originary l/c as:
Applicant:
Beneficiary:
transferability clause, with or without substitution, managing eventual amendments, etc
terms of delivery, FOB, CIF etc
mean of transport

It is important to evalutate all details

Thanks and ciao

[bdesh]

Hi,
Dear picant,
.
Actually I wanted to know whether one institute named "ABC company" can be applicant on behalf of another institute named "PQR company" where all other terms and conditions are ok!
.
Regards

[shahriar]

in my opinion, its possible. it happens under a situation where the actual applicant does not sufficient privilege to get a LC issued and use the credit line of some other company. while UCP 600 does not address this issue, its quite clear in ISP98

Terminology
1.09 Defined terms
In addition to the meanings given in standard banking practice and applicable law, the following terms have or include the meanings indicated below:

(a) Definitions
“Applicant” is a person who applies for issuance of a standby or for whose account it is issued, and includes
i. a person applying in its own name but for the account of another person or
ii. an issuer acting for its own account.

[picant]

Hi Pals,

I have here a credit in which applicant is so indicated: ABC Bank a/c yyy ltd .....,.
Moreover there is a word in english that classified this type of middleman: INDENT.

Other comments appreciated

Ciao