L/C ISSUED UNDER UCP500 AFTER 1JUL2007

SheenaLee · Post by **SheenaLee** » Fri Jul 06, 2007 1:00 am

Can an advising bank refuse to advise a L/C which is subject to UCP500 after 1Jul2007? Applicant may indicate L/C to be subject to UCP500 due to the commercial contract which made reference to UCP500.

AbdulkaderBazara · Post by **AbdulkaderBazara** » Fri Jul 06, 2007 1:00 am

Under UCP 500 or 600 a bank has the option to refuse advising a credit or an amendment; it just has to inform the sender about its decision - refer to article 7(a) of UCP 500 and article 9 (e) of UCP 600.

We just have to wait and see wheher banks would refuse advising a credit just because the credit is subject to UCP500. I don't believe many banks would do that; at least for the coming few months.

regads
Abdulkader
[edited 7/6/2007 10:56:51 AM]