Pls urgently let us know yr ideas and the relating ICC ideas on our following case:
- We issued an irrevocable LC in favour of a beneficiary in China with the expiry date in the end of 2009
- The applicant requested us to cancel LC and get back the deposit. They presented to us a certificate certifying that the beneficiary has been stopped bussiness for investigation within 2 years (until 2010)
- We said that we cannot cancel the above LC without the confirmation of the beneficiary and only release the deposit when the LC expire
Thanks a lot
cancellation LC without Ben's confirmation
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PhanThanhNhan
- Posts: 102
- Joined: Fri Apr 05, 2019 5:23 pm
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ThuHoangAnh_
- Posts: 58
- Joined: Fri Apr 05, 2019 5:28 pm
cancellation LC without Ben's confirmation
Hi Thanh Nhan,
You are right. As per UCP 600 Article 10 (a), LC can not be cancelled without the beneficiary’s agreement.
Please inform the advising bank of the applicant’s request for L/C cancellation requesting them to obtain the beneficiary’s agreement and confirm the same under an authenticated swift message to your bank.
Please also ask the applicant to contact the beneficiary to speed up the confirmation of cancellation if the applicant wants his deposit to be released soon.
If no confirmation of cancellation is received or if no other agreement is reached between the applicant and your bank, the applicant has to wait until the LC expires.
Best regards,
N.H. Duc
[edited 1/6/2009 10:44:54 AM]
[edited 1/7/2009 4:40:25 AM]
You are right. As per UCP 600 Article 10 (a), LC can not be cancelled without the beneficiary’s agreement.
Please inform the advising bank of the applicant’s request for L/C cancellation requesting them to obtain the beneficiary’s agreement and confirm the same under an authenticated swift message to your bank.
Please also ask the applicant to contact the beneficiary to speed up the confirmation of cancellation if the applicant wants his deposit to be released soon.
If no confirmation of cancellation is received or if no other agreement is reached between the applicant and your bank, the applicant has to wait until the LC expires.
Best regards,
N.H. Duc
[edited 1/6/2009 10:44:54 AM]
[edited 1/7/2009 4:40:25 AM]
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PhanThanhNhan
- Posts: 102
- Joined: Fri Apr 05, 2019 5:23 pm
cancellation LC without Ben's confirmation
Pls be informed that we and the applicant cannot contact the beneficiary. THE COMPANY IS UNDER BLOCKAGE BY LOCAL CIVIL COURT AND ORDERED TO CEASE OPERATION.
How can we do in this case?
How can we do in this case?
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ThuHoangAnh_
- Posts: 58
- Joined: Fri Apr 05, 2019 5:28 pm
cancellation LC without Ben's confirmation
Hi,
The issuing bank’s liability for payment shall remain so long as the L/C is still valid. However, if having good evidence to believe that the beneficiary, who is under blockage by civil court and ordered to cease operation, has not effected and will not be able to effect any shipment under the L/C, the issuing bank may consider the possibility of releasing the pledged deposit to the applicant.
It depends on case by case. In consideration of the release of the deposit, the applicant may be requested to provide other forms of security.
Best regards,
N.H. Duc
The issuing bank’s liability for payment shall remain so long as the L/C is still valid. However, if having good evidence to believe that the beneficiary, who is under blockage by civil court and ordered to cease operation, has not effected and will not be able to effect any shipment under the L/C, the issuing bank may consider the possibility of releasing the pledged deposit to the applicant.
It depends on case by case. In consideration of the release of the deposit, the applicant may be requested to provide other forms of security.
Best regards,
N.H. Duc