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If We Excluded Subarticle 7(C) From Letter Of Credit ,Is The Letter Of Credit Become Revocable Or Irrecoverable?
Posted: Fri Jan 27, 2017 10:01 pm
by Albert
Dear All,
If we excluded subarticle 7(c) from Letter of credit ,is the letter of credit become revocable or irrecoverable ?
exclusion of 7c
Posted: Mon Jan 30, 2017 2:45 pm
by Navi
Hi,
LC is an undertaking of the issuing bank. Article 7 defines these undertakings and 7b states that they are irrevocable. Exclusion of only subarticle 7c will not make an LC revocable and for me only create confusion. The article 7 must be fully excluded to make the LC revocable and relieve IB.
Regards
Check in this Forum
Posted: Tue Jan 31, 2017 1:33 am
by picant
Hi Pals,
the argument has been already treated referring to a Newsletter of Commerzbank
Top@doc n. 1 2008, with comments by Navi too.
Ciao
Posted: Tue Feb 14, 2017 3:48 pm
by khaledosama
hi
article 7c of ucp 600 is not related to L/C being revocable or irrevocable
ucp states that any L/C is IRREVOCABLE unless it states otherwise
UCP 600 sub-article 7(c)
Posted: Fri Feb 24, 2017 11:59 pm
by shafi865
Hi,
UCP 600 sub-article 7(c) states about the issuing bank's undertaking to reimburse the nominated bank. Thus if a a credit excludes sub-article 7(c), then the nominated bank falls in a risky position. There is no relation of revocable or irrevocable of the LC with this exclusion.
Regards,
Shafique