Revocable Standby & Revocable Transferable LC's

[AbdulkaderBazara]

I was reviewing the Sept. 2000 edition of Swift Book, Category 7, Documentary Credits & Guarantees, November 2000 Standard Release, and noted that under heading "MT 700 Field Specifications", item no. 2, Field 40A: Form of Documentary Credit (on page 28) the following are also covered:

Revocable Transferable LC
Revocable Standby
(Note: Revocable Transferable Standby – NOT COVERED)

I would like to have feedback / opinion on the following:

1)I have never encountered a Revocable Transferable LC so far and believe it is risky to have one despite the fact that UCP 500 does not restrict transferable LC's to be issued in irrevocable form only. Due to the complex nature of Transferable LC’s, I believe that the next revision of UCP 500 should clearly indicated that Transferable LC’s should be issued in irrevocable form only. In addition, I believe the code “Revocable Transferable LC” should be removed from the next edition of the Swift Book

2)Though Swift messages are subject to ICC UCP unless otherwise specified and the Swift Book does not cover structured format for standby LC’s, I believe the code “Revocable Standby” should be removed from the next edition of the Swift Book since ISP98 does not cover Revocable Standby LC’s. In addition it seems it is meaningless to have Revocable Standbys.

Thank you

[T.O.Lee]

The SWIFT is trying to provide a specific message format for SBLC subject to the ISP 98. Before the enquirer comments on revocable and transferable SBLC, please look at my comments on DC PRO under UCP 500 for the use of revocable commercial credits.

I am from www.tolee.com

[edited 8/30/01 2:13:41 AM]

[AbdulkaderBazara]

I believe no one should be discouraged from putting his/her ideas in the forum. These are ideas only and need not be correct. The enquiry was put before the comments given by Mr. Lee in the DC-PRO. If anyone can give explanation under what circumstance would revocable standby letters of credit and revocable transferable LC's, where multiple partial transfers are allowed, could be used, please do so for the general education purpose. On my part I will attend the workshop stated above not just to get the answers for the questions but to learn from the vast experience and knowledge of Mr. LEE.
[edited 5/25/01 10:58:34 AM]

[M.SHAKILAKHTER]

While attending the forum it is good to clarify the matter for enquirer and not
to hold as a business promotion. I know it's business of TO.LEE but DC-PRO is not
the right platform for it.

AKBazara, as you know UCP is for letter of credits revocable or irrevocable and standby or transferable is a nature of credit whether it's revocable or irrevocable.
As far as the risk is concerned it depends on the issuer's risk management.

[T.O.Lee]

Dear Mr. Shakil Akhter,

Thanks for your honest comments on our message expressed here that appears to you as a promotion of our workshops in KSA. In fact, we are trying to dissipate information to the enquirer that may need it. We have no such intent and in fact, we know the bottom line as given by the DC Pro. If the DC Pro considers it so, you should not have seen our message as it would be removed or edited promptly.

Now to ensure that everybody is happy, an atmosphere which we are trying to create, we have already voluntarily erased the whole message and some other messages in our responses to other queries that may be considered as promotion by certain members who may be sensitive to such messages.

If ever our message has created such impressions on any member, please accept our sincere apologies and we will take more caution in our future messages.

For any opinions that you would like to communicate to us one on one, please do so by email. Our address is experts@tolee.com We always listen.

We are from http://www.tolee.com

[edited 12/2/01 10:11:08 PM]