Amendment charges

jabra · Post by **jabra** » Thu May 06, 2010 5:02 pm

A LC says that all charges outside our counter are on beneficiary’s account. After few days an amendment was issued which says that “this amendment charges, including ours, is on beneficiary account. Can the issuing bank do this?

bdesh · Post by **bdesh** » Sat May 08, 2010 11:50 pm

Hi,
Yes, issuing bank can do this. Because, the beneficiary still have the right to refuse the amendment.
If the bene refuses, the LC shall be unamended.
Usually, when the amendment (in addition to this point) is required only for the lapses/requirement of Beneficiary, this type of condition is imposed.
Regards
bdesh

berry · Post by **berry** » Mon May 10, 2010 10:18 am

i agree with the answer. if the beneficiary accepts, the charges will be on beneficiary's account. if the beneficiary refuses, both the advising bank and issuing bank may claim charges from the applicant