1st Beneficiary Request To Transfer Only Part Of Amendment

[nesarul]

Dear all,
solicite your opinion.
Bank X issued a transferable credit for value USD100.00 where credit available with Bank Y.
The first beneficiary approached the nominated bank to transfer the credit to subsequent two beneficiaries under the following condition of transfer:
1. The first beneficiary will substitute the invoice and draft.
2. amendment if any, will advise to second beneficiary subject to prior consent of the first beneficiary. and

duly transfer it.

Later on an amendment followed with the conditions below:
1. credit value increased by USD10.00 [this is because of persuation of the 1st beneficiary with the applicant due to escalation of price]
2. Port of Loading should be read as mongla instead of chittagong [this is due to political unrest at chittagong port for a long time].
3. air shipment is allowed in addtion to shipment by sea.[clause in standard format].

after receiving the amendment, the first beneficiary advised the transferring bank to advise only condition 2 and 3 to second beneficiary.
The beneficiary also revealed that since the second beneficiary is still agree to supply the goods as per original credit terms, he [the first beneficiary] reluctant to advised the condition 1 of the said amendment to the 2nd beneficiary in order to augment his profit margin.
what course of action the transferring bank will take?
awaiting for all forum members reply
regards
nesar

[shahriar]

dear nesar,

i see no problem in advising the amendments. i will not consider the problems related to "partial rejection of amendment is full rejection" here since its very natural in transferable letter of credit that the price quoted in the original letter of credit will be different from the transferred one. therefore even if the first beneficiary fails to substitute the document, the second beneficiary should have no problem in getting the reimbursement from the issuing bank.

regd

shahriar