Amendment

[M.A.Chowdhury]

Dear Sir,

Can we amend the name & address of supplier or applicant entirely? [ I mean a totally different party but in the same country]

Regards,

Monir

[shahriar]

yes, you may change the name and address of the applicant. technically applicant is not a party of the credit. so i see no problem in this amendment.

[cvrkswami]

As I see the word Supplier in your post, I assume that your request is for changing the name of the beneficiary. In Indian context, the word applicant, is the customer on whose behalf the LC was issued, and hence my assumption. Changing the name of the beneficiary is not possible. Wait till the expiry date and then open a fresh LC.

[M.A.Chowdhury]

Dear Shahriar Bhai,

Thanks for ur comments. What about Beneficiary's name/status?

Monir

[shahriar]

Dear Shahriar Bhai,

Thanks for ur comments. What about Beneficiary's name/status?

Monir

nothing is impossible my brother . what my bank usually do in such scenerio that issue an amendment changing the beneficiary detail and request for acceptance confirmation from the advising bank. however personally i dont like the idea to change the name of the beneficiary much. a credit is a contract between the beneficiary and the issuing bank. changing the beneficiary almost like cancelling it. why not issue an new LC then. i find it clear and better understandable. not to meantion if the beneficiary does not provide the acceptance, you will be in confusion till the presentation of document.

[nesarul]

Dear,
How you consider this process.... i acknowledge that LC is a contract between between issuing Bank and Beneficiary and should not change through amendment.
Practically:
If i follow the following steps to change the beneficiary name then what will happen:
1. first of all, old beneficiary deposits the original advised letter of credit to the advising Bank with a declaration that he didn't perform under this credit and will not perform it and has got no objection if others perform it.
2. After getting the original advised LC from the old beneficiary with this declaration, Advising Bank send a MT 799 to the Issuing Bank on above.
3. After receiving the confirmation message, Issuing Bank change the name of the beneficiary through an amendment and pass it to the advising Bank with the following clause:
"Please call back the original Advised LC from the old beneficiary and advised the same along with this amendment to the New beneficiary"
4. After receiving this amendment, the advising Bank advised this amendment along with this original credit to the new beneficiary.
.
Then what will happen, Is their any specif risk associated on it.
waiting for comment
nesar

[M.A.Chowdhury]

Dear Nesar Bhai,

I think your approach is most appropriate and does not associate any risk. But it will be problematic at advising bank's end to collect the NOC. One thing more, who will bear the 1st advising charge?

Rgds,

Monir

[nesarul]

Dear,
Look, first of all, we have to consider, in what situation this type of request come from....
one possible situation is that the beneficiary and the applicant has business relationship for a long time but due to unavoidable circumstances the beneficiary can not ship the goods OR
it may the local agent of the beneficiary who made this deal between the applicant and the beneficiary..... since it has deal with the applicant over and over and found his beneficiary guilty, he may request...
.
either of the above cases, the beneficiary will come forward and do whatever necessary for the sake of future business...
.
On the other hand, there may be some illegal issues which i can not mention in this open forum.... but its reality...
.
Regarding charges... i think UCP has a clear guideline ....article 37.
regards
Nesar