Revolving Clause and period of presentation

asamaha · Post by **asamaha** » Fri Feb 27, 2009 12:00 am

The L/C includes an automatic monthly revolving clause with a one year expiry.

It states under field 48 of MT700 that : Documents must be presented within 21 days from shipment but within the L/C expiry.

What do you think is the latest date for presentation of documents for the shipment/s of a given month?

Regards
Antoine

GlennRansier_ · Post by **GlennRansier_** » Fri Feb 27, 2009 12:00 am

This is a very oddly structured LC. What is the latest shipping date? Does in revolve monthly also? At what date does it auto reinstate? It would be beneficial if you quoted the exact terms.

asamaha · Post by **asamaha** » Fri Mar 06, 2009 12:00 am

Suppose the following :

L/C amount : 100.000 usd
L/C issue date : 1 Jan 2009
L/C expiry date : 21 Feb 2010
Period of Presentation : 21 days
Revolving Clause : Monthly Non Cumulative starting from 1 Feb 09
Number of Revolvements : 11
Partial shipments : Allowed

On which day of each month will you activate the revolvement of the subsequent month?

Thks
Antoine

GlennRansier_ · Post by **GlennRansier_** » Sun Mar 08, 2009 12:00 am

The intention appears to be the first day of each calendar month i.e. M but it is not expressly stated. You could either request them to confirm this or send them a notice that this is how you will enact their instructions, whichever way your bank is more comfortable,

GlennRansier_ · Post by **GlennRansier_** » Sun Mar 08, 2009 12:00 am

sorry, meant to add after calendar March 1-30, April 1-30, etc.