Amendments

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melissachin
Posts: 11
Joined: Fri Apr 05, 2019 5:22 pm

Amendments

Post by melissachin » Thu Aug 09, 2001 1:00 am

Could amendments be routed to a different bank other than the advising bank that originally advised the credit? This could be due to time constraints hence the beneficiary requires amendment to be routed to the bank nearest to them.

Would the issuing bank be exposed to any risks in agreeing to the above?

Would the issuing bank's authorisation to the negotiating bank to negotiate notwithstanding the discrepancies constitute an amendment? If so, does it mean that Art 11 b apply i.e. does it need to go through the advising bank first?
larryBacon
Posts: 689
Joined: Fri Apr 05, 2019 5:26 pm

Amendments

Post by larryBacon » Thu Aug 09, 2001 1:00 am

If the beneficiary requires a speedy amendment, the best way to do this is by SWIFT, or failing that, tested telex, courier etc. Trying to use another bank to advise the amendment may end up having the opposite effect - i.e. delaying receipt of the amendment because an amendment sent in this way will not be valid under Article 11b.

Despite requests from the beneficiary or applicant, an issuing bank which agrees to send amendments other than provided for in Article 11b is completely at risk in contravening the UCP.

An acceptance of discrepancies by the issuing bank is NOT an amendment. It requires, inter alia, holding the documents in trust awaiting approval of the beneficiary to release documents against payment etc.
T.O.Lee
Posts: 743
Joined: Fri Apr 05, 2019 5:28 pm

Amendments

Post by T.O.Lee » Thu Aug 09, 2001 1:00 am

ABANDONMENT OF RIGHTS IS NOT AMENDMENT

The issuing bank and the applicant both have the right to refuse payment due to discrepancies. A waiver is not to exercise their rights and pay in spite of the discrepancies. Not to exercise a certain right is of course not an amendment. Hence such abandonment of rights does not change the terms and conditions in the DC and the nature of the discrepancies.

If the applicant agrees not to exercise his right, the issuing bank may still have the right to exercise its right to refuse payment, because the DC is the issuing bank's payment undertaking, not that of the applicant, who is not even a party to the DC.

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

[edited 10/16/02 7:57:40 PM]
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