Deal all,
a credit issued for usd100. partial shipment allowed.
can the confirming bank add its confirmation upto usd50.00?
reagrds
nesar
Can The Confirming Bank Add Its Confirmation
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nesarul
- Posts: 513
- Joined: Sun May 18, 2008 9:46 pm
- First Name: Nesarul
- Last Name: Hoque
- Organization: Mutual Trust Bank
- Filter: Two Plus Two =: 4
- Location: Bangladesh
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shahriar
- Posts: 923
- Joined: Fri May 16, 2008 1:03 am
- First Name: Shahriar
- Last Name: Masum
- Organization: Mutual Trust Bank
- Filter: Two Plus Two =: 4
- Location: Bangladesh
Re: partial confirmation
dear nesar,
yes its possible. even when partial shipment is not allowed. this idea is especially effective when there is more than one confirming bank. however the confirming bank should clearly mention on the advice regarding the credit amount for which it is adding its confirmation.
regd
shahriar
yes its possible. even when partial shipment is not allowed. this idea is especially effective when there is more than one confirming bank. however the confirming bank should clearly mention on the advice regarding the credit amount for which it is adding its confirmation.
regd
shahriar
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cparial
- Posts: 24
- Joined: Sun Jul 06, 2008 6:50 am
Re: partial confirmation
Can we expect more expert opinions on the matter??
thanks
thanks
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iLC
- Posts: 504
- Joined: Thu Jun 26, 2008 10:33 pm
Re: partial confirmation
dear cparial,
there is nothing new to add really. i agree with shahriar. there is no reason why a LC cannot be confirmed in 50% though it would be a good question why some one would do that. however there might be some cases where such is so obvious. say you confirmed a credit for 100000 while it has been amended to 200000 and you dont want to extend confirmation for the rest. so if the beneficiary present document for 200000, then you will only honor for 100000. theoretically this can be done at the beginning of the credit as well.
iLC
there is nothing new to add really. i agree with shahriar. there is no reason why a LC cannot be confirmed in 50% though it would be a good question why some one would do that. however there might be some cases where such is so obvious. say you confirmed a credit for 100000 while it has been amended to 200000 and you dont want to extend confirmation for the rest. so if the beneficiary present document for 200000, then you will only honor for 100000. theoretically this can be done at the beginning of the credit as well.
iLC
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Md.zakir Hossen
- Posts: 129
- Joined: Tue May 20, 2008 10:14 pm
Re: partial confirmation
50% confirmation- possible:
there are a number of reasons why a bank may add this confirmation and some of this are:
02.Issuing Bank requisition is for 50%
01.the limit available to the bank under its own guidelines for the risk from the issuing bank may available for such an amount(50%)
there are a number of reasons why a bank may add this confirmation and some of this are:
02.Issuing Bank requisition is for 50%
01.the limit available to the bank under its own guidelines for the risk from the issuing bank may available for such an amount(50%)
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picant
- Posts: 2026
- Joined: Wed Aug 20, 2008 1:49 pm
Re: partial confirmation
Hi Pals,
I think that in this case we have to follow art 8 d, UCP 600. The bank requested to confirm a credit must inform the issuing bank immediately if is not ready to add confirmation, and issuing bank will act in order to avoid to be considered a II nd or III rd class institution. As banker I will provide any effort to let my bank to be considered good 100 percent, by depositing collateral amounts or asking another bank to provide a counter-guarantee, etc. Do you think that applicant will instruct me to open another L/C in the future or will ask another bank?
I think that it is possible to partially confirm, but we must consider it from the marketing point of view.
Ciao
I think that in this case we have to follow art 8 d, UCP 600. The bank requested to confirm a credit must inform the issuing bank immediately if is not ready to add confirmation, and issuing bank will act in order to avoid to be considered a II nd or III rd class institution. As banker I will provide any effort to let my bank to be considered good 100 percent, by depositing collateral amounts or asking another bank to provide a counter-guarantee, etc. Do you think that applicant will instruct me to open another L/C in the future or will ask another bank?
I think that it is possible to partially confirm, but we must consider it from the marketing point of view.
Ciao