UCP 600, article 10 f...

[Navi]

Dear friends,
.
I usually come across the following situation while advising amendments:

Bank A, issuing bank
Bank B, first advising bank
Bank C (our bank) second advising bank...
.
Bank A send MT707 to Bank B and Bank B advise amendment through mail, post, fax etc to Bank C respectively. While advising, Bank B on its instruction letter adds the folllowing clause: "pls inform us whether amendment accepted or not by beneficiary as soon as possible, in case of not rejecting within 7 days, amendment deemed to be accepted"

UCP 600 10f, says that a provision in an amendment should not include such clauses and will be disregarded. Here, this clause does not belong to the original amendment but the advising bank instructions.

Can the advising bank stipulate such a term while advising amendment or credit?

Thanks and regards....

[jmitra]

well, in international trade, if you say, can the advising bank do it, i will say, yes! it can do anything it want. who is going to restrict it? :lol:

anyway, i dont see any use of this clause. simply disregard

[loankim]

Hi all,

I agree with Jmitra, also want to refer to UCP 600, article 10d .
According to its spirit, the advising bank MAY make enquiries of the Bene. but the Bene. is under no obligation to provide any intimation of acceptance or rejection pior to the presentaion of documents.

rgds,

[Navi]

Thanks for your comments,
.
From yr posts I understand that beneficiary needs not provide a notice of acception or rejection within stated period despite advising bank instructions.

To widen the subject, If applicant or issuing bank has the intention to receive acceptance or rejection of amendments frm beneficiary, then a condition must be added to the original credit.

Regards

[ldt5205]

According to UCP 600 10f, a provision in an amendment should not include such clauses and will be disregarded.
Ben may express its acceptance or rejection by presention of the docs.