Transferable L/C issued by Iranian Bank and advised through European Bank who have transferred it. If documents are presented in compliance under the transfer l/c to the European bank, are they liable to pay or is it understood that they will only pay upon receipt of funds from the issuing bank? (Sh...

Thanks for the sound advice Vinnie. We agree that the best solution for all parties concerned in terms of bank relations would be to split the difference.

Laurence,

Thanks for your speedy reply!

The BL indicates as (preprinted) port of loading Port A (Same as the place of receipt)

Port B the port of transhipment is only mentioined on the appendix to the BL.

On it's face it shows the pre-carriage and ocean vessel both leaving from Port A.

L/C issued as follows :- Shipment from Port A Shipment to POrt C Transhipment Allowed Ocean Bill of Lading presented under a letter of credit whereby the place of receipt and the port of loading are the same port (A)with both a pre carriage and ocean vessel. The shipped on board notation on the bill...

Transferable Letter or Credit received from issuing bank with a general description of goods. The first beneficiary needs to add a shipping schedule to the transfer letter of credit to keep control of quantities shipped. Are the transferring bank permitted under UCP 500 to add this shipping schedule?

Further Development

It has turned out that the second beneficiary's bank had discounted the drawing at the outset. Therefore, the bank have received the benefit of the fx movement rather than the 2nd beneficiary.

Does this make any difference to the first beneficary's case?

Documents presented under transfer Letter of credit claiming in Euros even though there was a clause in the credit stipulating that claim was to be made in USD at an agreed rate. (Forward contract set up by the first beneficiary of the transfer L/C and rate agreed with the second benefeficiary). The...

Issuing Bank (Bank A) Advising Bank (Bank B) Bank A issued L/C with field 78 stating 'All charges of banks other than Bank A are for the beneficiary's account' When the L/C is paid, an amount for acceptance/payment message (swift cost) is deducted from the payment by Bank A. Our view would be that a...