UCP 600 sub article 10 (f) provides that “A provision in an amendment to the effect that the amendment shall enter into force unless rejected by the beneficiary within a certain time shall be disregarded”. How about a situation where the credit itself contains such a provision in respect of future amendments, would the above provision still apply.
Regards, Khalid
Rejection of Amendment
Rejection of Amendment
No, but:
1. Such a credit would not -I believe- be truly 'irrevocable' and:
2. I would refuse to confirm such a credit.
[edited 12/7/2006 5:27:18 PM]
1. Such a credit would not -I believe- be truly 'irrevocable' and:
2. I would refuse to confirm such a credit.
[edited 12/7/2006 5:27:18 PM]
Rejection of Amendment
Jeremy,
Agreed that a confirming bank has every right to refuse confirmation unless it is satisfied with the credit provisions, but treating it as irrevocable don’t you think that’s a bit harsh after all the issuing bank is only trying to invoke Article 1 of UCP that allows an issuing bank to vary the terms of the application of UCP by the wording in the credit, which may or will give a different result to an Article(s) of the UCP not withstanding that the intended stipulation is against the spirit of UCP.
Best regards, Khalid
Agreed that a confirming bank has every right to refuse confirmation unless it is satisfied with the credit provisions, but treating it as irrevocable don’t you think that’s a bit harsh after all the issuing bank is only trying to invoke Article 1 of UCP that allows an issuing bank to vary the terms of the application of UCP by the wording in the credit, which may or will give a different result to an Article(s) of the UCP not withstanding that the intended stipulation is against the spirit of UCP.
Best regards, Khalid
Rejection of Amendment
Khalid,
1. I aquite gree an IB is perfectly entitled to do as you suggest & nor was I suggesting such a credit was revocable or anything close to that. My point was simply that the beneficiary's refusal rights are being curtailed in a way that I consider reduces (for want of a better word) the irrevocability of the credit (not that it particularly bothers me).
2. Actually, I've changed my mind (it was near 1700 when I made the posting; at least that's my excuse). Of course a confirming bank can still refuse to advise the amendment to the benef. in the 1st place if it does not like it.
Regards, Jeremy
[edited 12/7/2006 9:38:51 PM]
1. I aquite gree an IB is perfectly entitled to do as you suggest & nor was I suggesting such a credit was revocable or anything close to that. My point was simply that the beneficiary's refusal rights are being curtailed in a way that I consider reduces (for want of a better word) the irrevocability of the credit (not that it particularly bothers me).
2. Actually, I've changed my mind (it was near 1700 when I made the posting; at least that's my excuse). Of course a confirming bank can still refuse to advise the amendment to the benef. in the 1st place if it does not like it.
Regards, Jeremy
[edited 12/7/2006 9:38:51 PM]
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KimChristensen
- Posts: 404
- Joined: Fri Apr 05, 2019 5:21 pm
Rejection of Amendment
Dear Khalid & Jeremy,
Without considering who is entitled to refuse to do what, I guess that such a provision in the CREDIT (and not in the amendment) would effectively change/overrule UCP 600 article 10(f).
Best regards
Kim
Without considering who is entitled to refuse to do what, I guess that such a provision in the CREDIT (and not in the amendment) would effectively change/overrule UCP 600 article 10(f).
Best regards
Kim