settling the LC at a lower price

[jim]

Dear Sir,

I want your opinion on this case.
the original LC value was 100000 USD. now there are discrepancies and refused the document. later the applicant and the beneficiary settle the issue among themselves and decided to settle the matter for 90000 USD. the applicant want us to transfer this fund and release the document. in turn we send a swift to bank that send the document informing the update. the bank send a 799 informing that the beneficiary is ready to take the fund. is the process ok or do you need to amend the LC for this?

[iLC]

the process is fairly ok to me. there is no question of amendment here. the presentation was discrepant and i assume that you rightly issued the the refusal advice, there is no coverage for that particular presentation under the credit. the negotiation is outside the scope of the credit and a simple authenticated swift from the presenting bank will do the job

[picant]

Hi Pals,

banks in a L/C must be impartial, so I hope that an y messages containing proposal of reduction sent by banks will start with "We understand that applicant is ready to.............. as banks must remain outside any contractual actions by the parties.

Other comments appreciated

Ciao