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Advising of amendment of Guarantee

Posted: Wed Jan 05, 2011 9:30 pm
by CDCS2009

while UCP600 insists that any amendment of the letter of credit must be advised though the same channel as that of the LC, why URDG offer a leverage in article 10?

party vs bank

Posted: Fri Jan 14, 2011 9:09 pm
by shahriar
In UCP600, the LC is issued and advise only by the bank. but URDG allows any party (any person or company) to advise a credit. practically any person or business has higher probability to be out of business compared to a bank especially considering the fact that a guarantee often lasts over a long period. hence URDG allows this leverage.

more comments welcome

Advising of amendment of Guarantee

Posted: Thu Mar 15, 2012 2:40 pm
by leekaiyin55
Dear Shahriar

Your view makes sense although I am not sure if it is the original intention of the drafters.

One more idea is that BG tends to be secondary payment instructment and negotiation is not covered under URDG758. The role of advising party is more of verifying the genuineness of the BG only.

Any further comments?