Dear Abdulkader, 1. The extract you have quoted from opinion R482 which states that “The type of advice is dependent on the instructions in the original credit as to WHETHER OR NOT THE CREDIT WAS TO BE CONFIRMED AND WHETHER THE ADVISING AND NOMINATED TRANSFERRING BANK AGREED TO SUCH A REQUEST.” does...

I believe the question that ISBP begets is that “ what if we encounter a letter of credit stating that it is subject to UCP 500 and ISBP 645” OR “this L/C is subject to UCP 500 and any dispute arising from its interpretation will be subject to ISBP 645” Although these are imaginary scenarios I wonde...

Dear Leo I have thoroughly revised the ICC banking commission opinion R482 and found it to support my views expressed inhere that the transferring bank is under no obligation to confirm the referred portion of a credit. The transferring bank also could not confirm such portion unless the original cr...

The assignee should be aware of this risk if he really wants to hedge against the possibility of the presenting documents directly to the issuing bank. It is not really the duty of the confirming bank but rather the assignee’s, however it may rely within the context of due diligence that the confirm...

From most of the posts, I understood that the transferring bank should have advised the letter of credit to the second beneficiary with adding its confirmation thereon. While I do understand that this might be a course of normal action this issue is not covered specifically in UCP 500 as such. The t...

Antoine,

You may want to know that the other bank arguing against the alleged discrepancy is a Lebanese one.

It might be noteworthy that what appears to be educational may take months of argument “for” and “against”

Hatem Shehab

i have received the following query. QUOTE Dear Hatem Hello, how are you doing, again I seek your help concerning a controversy which is taking place between us and BNP -PARIBAS BORDEAUX France concerning their alleged discrepancy (since January the 9th) as follows: The DHL receipt pertaining to dis...

Dear Dimitri

My friend is from the Lebanese bank. They noted a discrepancy on the 2nd set but did not state that on the documentary remittance schedule sent to the original issuing bank. Lebanese bank is the transferring bank of the credit to a Spanish bank.

Regards

Quote: Hello Hatem, Though I'm sure you're under pressure of immense work, I urgently need your opinion on the following matter which has been the subject of controversy between us (prime Bank in Lebanon) and a correspondent in Qatar who has issued L/C in favour of one of our customers against which...

I post the following query as received: Quote “Normally we establish letters of credit designated as irrevocable and subject to UCP 500, however I always wonder what will be the consequences resulting from the following scenario. The letter of credit stipulated the following: Payment terms: 85 % pay...