Dear friends,
i receive credit from a particular advising bank which always add the following sentence below the LC text on each page that it has received from the issuing bank
"This Letter of credit is not valid unless the notification letter no. #### is attached with it"
i would like to hear your opinion on such clause. what are the possible reason to add such clause? do you consider this clause valid under UCP 600?
Thanks!!
Letter of Credit not valid without advice notification
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shahriar
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bdesh
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Authenticity
Hi,
1. I think the possible reason to add such clause is to ensure security from their part.
2. There is no prohibition regarding this in UCP-600, so it's not invalid.
This my personal thinking.
Better opinion is appreciated.
Regards
Bdesh
1. I think the possible reason to add such clause is to ensure security from their part.
2. There is no prohibition regarding this in UCP-600, so it's not invalid.
This my personal thinking.
Better opinion is appreciated.
Regards
Bdesh
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S.Khalili
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- Joined: Wed Apr 28, 2010 2:52 am
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- Last Name: iqbal
- Organization: UBL
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Addition of clause by advising bank
What i could infer from question that this is an addition of clause by advising bank which are not binding upon bene.
It is advised that contents of notification should be perused and clarification is sought from AB.
Open to opinion.
Disclaimer:
The above represents my personal view. The reply given is not to be construed as being other than solely for the benefit of guidance, proliferation and exchange of knowledge. There should be no legal imputation associated with the reply offered.
It is advised that contents of notification should be perused and clarification is sought from AB.
Open to opinion.
Disclaimer:
The above represents my personal view. The reply given is not to be construed as being other than solely for the benefit of guidance, proliferation and exchange of knowledge. There should be no legal imputation associated with the reply offered.