+ Is it a must that the negotiation bank to record the amount negotiated at the orginal lc?
+ what is the practise in case of freely available with any bank, do we have to record the negoation on the orginal lc?
kinldy, confirm stating the source in UCP or ISBP?
thanks..
Negotiatin must be recorded on orginal lc
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Hussain
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picant
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l/c available with any bank
Hi Pal,
If yuo have in your hands an original l/c valid with any bank and you use it partially, you have to state that this l/c is still valid for the balance, that could be availed with another bank. More than UCP 600 you have to consider the original paper that was used in the past to issue freely negotiable l/c. It was issued in bank official paper, like cheques, with anti-forgery devices etc.. Presented with documents at any availment(partial shipments permitted) it was noted with the negotiated amounts.
More than UCP 600, today, you must check the SWIFT Handbook Category 7, where in MT700 usage rules it is written:
For freely negotiable documentary credits, if the Receiver does not further transmit the credit by MT710, it must add sentences to the effect that:
-The advice to the beneficiary must be presented at each negotiation.
-The negotiating bank must note each negotiation on the advice.
So, let me say that I have an hardcopy of this handbook, now issued in CD format, I dont know if, after UCP 600 entering in force, those sentences have been uptodate due to the possibility to issue l/c-documentary credit available with any bank by payment, deferred payment and acceptance too.
.
Other comments appreciated
Ciao
If yuo have in your hands an original l/c valid with any bank and you use it partially, you have to state that this l/c is still valid for the balance, that could be availed with another bank. More than UCP 600 you have to consider the original paper that was used in the past to issue freely negotiable l/c. It was issued in bank official paper, like cheques, with anti-forgery devices etc.. Presented with documents at any availment(partial shipments permitted) it was noted with the negotiated amounts.
More than UCP 600, today, you must check the SWIFT Handbook Category 7, where in MT700 usage rules it is written:
For freely negotiable documentary credits, if the Receiver does not further transmit the credit by MT710, it must add sentences to the effect that:
-The advice to the beneficiary must be presented at each negotiation.
-The negotiating bank must note each negotiation on the advice.
So, let me say that I have an hardcopy of this handbook, now issued in CD format, I dont know if, after UCP 600 entering in force, those sentences have been uptodate due to the possibility to issue l/c-documentary credit available with any bank by payment, deferred payment and acceptance too.
.
Other comments appreciated
Ciao