Advising of Amendment

[mando@vsnl.net]

Dear All Friends,

Issuing Bank issues amendment to advising Bank, Before advises to Beneficiary the issuing Bank can asked to stop advising or isssue amendment to beneficiary?.

We can understand that amendment in LC or cancellation of LC without agreement of issuing Bank or Confirming Bank if any and Beneficiary?.

Please explain same ?.

Thanking you
Pradip Bhavsar

[dholat]

you are already on the right track. an amendment or even a letter of credit is effective as soon as it gets out of the control of the issuing bank; no matter whether it has been advised or not. when you have transmitted a letter of credit, but want to cancel it, the beneficiary, issuing bank and confirming bank
(if any) must agree with that.
article 10a

Except as otherwise provided by article 38, a credit can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank, if any, and the beneficiary

i have not heard of any read case where the issuing bank wants to cancel an amendment. but i guess the process of canceling an amendment will be fairly the same as that of letter of credit itself.

please note that the same theory apply even if the credit gets lost during transmission; that is even before reaching the hand of advising bank

UCP600 article 7b is applicable here

An issuing bank is irrevocably bound to honor as of the time it issues the credit.