amendment includes confirmation detail
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amendment includes confirmation detail
we have issued an amendment to a credit which also includes confirmartion request to the advising bank. unfortunately we failed to negotiate propoerly with the advising bank and ultimately the advising bank didnt confirm. so technically part of the amendment is not enforceable by the beneficiary. what is the status of the amendment now? should it be treated as rejected?
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Clarification
This is not a 'part' of amendment which beneficiary must also adhere to. It is simply a request for advising bank. Would you consider that an L/C is not enforceable if the nominated bank does not confirm it. Would beneficiary comply with part of the credit? You cannot place a burden on negotiating bank so that an amendment to be considered accepted by beneficiary!
- shahriar
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enforceable vs acceptance
Dear CDCS 2009, i think you are missing a point here. UCP 600 article 10 is concern about the acceptance and rejection of the amendment and it has nothing to do with whether it is workable or not. so if the beneficiary accepts the amendment / make a presentation complying to the amended credit, i see no problem. since the credit is not confirmed, there is no point on discussing on the agreement between the issuing bank, confirming bank and beneficiary. precisely; the issuing bank issued an amendment and beneficiary accepted it. there may be some issue related to the availability of the credit which may have been changed for facilitating the proposed amendment. these changes will remain in force.