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Dear all,

LC issued by SWIFT from ISSU Bank specified APPLICANT Bank and no instruction about to whom the documents to be presented.
1. To whom the documents must be presented; ISSU Bank or APPLICANT Bank?
2. If the beneficiary presented draft drawn on APPLICANT Bank, Is it a discrepancy?
3. Can the documents be present to the APPLICANT Bank for payment directly?
Rgds,

applicant bank is simply the customer of the issuing bank. for any reason the applicant bank is unable to process the credit and requested the issuing bank to issue the letter of credit on its behalf. here the issuing bank assumes the entire liability as usual. therefore the answer your questions -
1. the document is to be presented to the issuing bank, not applicant bank.
2. it depends on the lc requirement. check the drawee field. (swift field 42a). also may depend on the availability of the credit. (Swift field (41a)
3. no. its the issuing bank who is giving the undertaking; not the applicant bank

other comments appreciated.

Fully agree with Shahriar point of view!

DEAR ALL,
HOPE FINE.
fully agree with shariar's opinion.
But I have some comment on this.
Basically UCP has VAGUE[EMPHASIS ADDED] information on this query.[QUERY:no place of presentation of document is stipulated in the credit]
we can apply, sub article 6(a) i.e. a credit is always available with the issuing bank. so , under this case, presentation to the issuing bank is safe harbour. BUT WHAT ABOUT THE FOLLOWING CASE:
CREDIT ISSUED = BANK A
CONFIRMED BY = BANK B
NO PLACE FOR PRESENTATION
EXPIRY= 01.08.09 [ BUT NO PLACE] FREELY AVAILABLE.
.
NOW WHERE THE BENEFICIARY SHOULD HAVE TO PRESENT THIS DOCUMENT?
.

.
P.S. ISP 98 HAS THE SOLUTION BUT UCP.......
WAITING YOUR REPLY
REGARDS
NESAR

Hi all,
i gree with Shahriar fully for 03 questions of Akmolpa, also sharing more something i have read.
An applicant is also generally used when the beneficiary has specifically requested a named bank to be issuer and that bank is not the banker of the applicant . The applicant will ask their bank to request the named bank to issue the credit , usually under cover of a guarntee or other arrangement, but request the insertion of their name as applicant bank to preserve their association with the credit transaction. The applicant bank is not recognised under the UCP and it is named issuing bank that has given the undertaking to hour.
Because the confirming bank also gives an undertaking in addition to that of the issuing bank . As such, the beneficiary can present the docs to the him or the issuing bank. However, a confirming bank may limit the scope of its confirmation i.e., only agree to cover bank and country risk and not documentary risk. So that, the beneficiary should check any limitation in respect of the confirmation which should be clearly indicated in the advice of confirmation sent.

rgds,

loankim wrote:Hi all,
However, a confirming bank may limit the scope of its confirmation i.e., only agree to cover bank and country risk and not documentary risk.
rgds,

.
This is not in line with UCP 600 regarding confirmation by a bank as the primary task for confirming bank is to undertake to pay against a complying presentation.
.
If you are talking about a silent confirmation (which is not covered under UCP 600), I may agree with you.
.
Take care,
Cristian

hi cristiand969,

you are right
i so hurry up and having a mistake

rgds,