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Advising of amendment of Guarantee
Posted: Wed Jan 05, 2011 9:30 pm
by CDCS2009
hi,
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?