Some commercial LC or standby requires presentation of documents (in the event of claim) to be issued or signed/counter signed by the applicant. We know ISBP's (item no.4) stands with respect to presentation of documents that are to be issued or countersigned by the applicant. But sometime applicant insist for such clause and beneficiary agrees.
Is there any red flag issue or is there any possibility of fraud for requireing presentation of documents that are to be issued signed/counter-signed by the applicant. Is there any risk for the issuing bank for such requirement?
Shall appreciate comments from anybody.
Shahed
Toronto
Documents issued by applicant
Documents issued by applicant
ISBP #4 and ISP98 Rule 4.10 reflect the LC community's view and will likely be enforced. Because of the increased possibilty of the applicant's overreaching the beneficiary, I would consider quoting one or the other in any LC to which either might be applied. Regards, Jim Barnes