Beneficiary's draft

[Shahed]

Shall appreciate anybody's thoughts on how the beneficiary’s draft should be drawn on.

We have issued a SBLC to the beneficiary in Korea. The SBLC is available with the issuing bank by payment (field 41A), showing drawee as the issuing bank (field 42A), place of expiry is Korea. The SBLC states – We, ............hereby issue in your favor this irrevocable Standby L/C which is available by payment against your sight draft drawn on the issuing bank, accompanied by the following documents:

Now the beneficiary is insisting to amend the L/C to read Drawn on the "Korean Bank" i/o the issuing bank.

In our opinion a Korean Bank is simply an advising bank (no undertaking to honour any presentation) in the transaction. As such, it makes no sense to show the drafts are drawn under the “Korean Bank”. We suggested the beneficiary the option of “adding Confirmation”, but they have rejected it.

In this circumstances, can we amend the SBLC as requested by the beneficiary ? Any concern, if we agree with the beneficiary's request.

Regards,

Shahed

[polterd]

Since your l/c is available with you (issuing bank) by payment, the request for presentation of a draft is pointless. So, delete it.

Best regards,
Bogdan