Fresh Cut Clause

Basel · Post by **Basel** » Mon Nov 20, 2006 12:00 am

Dear All,
we have received a request from one of our clients based on request from his business counterparty to add a claue called"Fresh Cut" to payment L/G text.
does anyone can explain the meaning and structure of such clause.

PradeepT_old · Post by **PradeepT_old** » Tue Nov 21, 2006 12:00 am

Dear Basel,

Could you advise the wording of the clause ?

Pradeep

RolandLeupi · Post by **RolandLeupi** » Tue Nov 21, 2006 12:00 am

Such clause do not exist in the normal vocabular of guarantees. If however it appears somewhere I would treat the guarantee with suspicion.
Roland

Basel · Post by **Basel** » Tue Nov 21, 2006 12:00 am

Pradeep
We really do not know the exact wording, our client simply mentioned he wants that clause to be added, we were suspecious about the clause so we want to know if anybody got a clue about it.

NigelHolt · Post by **NigelHolt** » Wed Nov 22, 2006 12:00 am

If you look at the US Treasury site page @:

http://www.treasuryscams.gov/instit/sta ... mebank.htm

you will see that ‘fresh-cut paper’ is a term found in ‘Prime Bank Instrument Fraud’.

PradeepT_old · Post by **PradeepT_old** » Fri Nov 24, 2006 12:00 am

Thanks Jeremy.

Basel, I would shy away from inserting any such clause based on heresay and land myself into unforeseen trouble and any consquent wrangle (legal or God forbid unwarranted illegal). What if the clause that you think is "fresh cut" is not "fresh cut" ? By the way, what are the underlying goods ? Is it agricultural stuff, by any chance ?

Regards,

Pradeep

Basel · Post by **Basel** » Mon Nov 27, 2006 12:00 am

Predeep,
we decided not to go ahead with the deal, it sounds suspecious.

thank you all for the help, really appreciated.

Basel