Straight DC
-
larryBacon
- Posts: 689
- Joined: Fri Apr 05, 2019 5:26 pm
Straight DC
Like Vincent O'Brien, I prefer to avoid the use of "Straight DC" because it is used with different meanings - L/C issued directly to the beneficiary & where the transport document is straight consigned.
Straight DC
There is no real need to describe DC with so many fancy terms, such as "absolute, independent, unconditional, assignable, divisible, transmissible, fractionable, callable, revolving, straight, evergreen, reciprocal...". In fact in the ISP 98 most of these fancy terms created by certain flowery lawyers have been disregarded.
In Canada many banks use the term "documentary letter of credit". We think the term "documentary" appears to be superfluous. Remember the "clear and precise" instructions rule. It should apply to the name of a DC as well.
We agree with Vincent and Mr. Bacon that "straight DC" is not "a well established banking term understood worldwide" as regarded by Mr. Pavel Andrle. Otherwise we should have used it very frequently.
Should a standby DC be also named straight DC? since there is also no nominated bank involved usually?
Similarly we have "straight bill of lading" and in fact we have more than 40 ways to call a bill of lading. But we do not like this idea. Such fancy terms would only lead to more confusions although confusions may bring us more business.
T. O.
(for those who know me, it means "Toronto Ontario". It seems that my destiny (domicile of my company) has been written in my name!)
[edited 8/6/02 3:00:02 AM]
In Canada many banks use the term "documentary letter of credit". We think the term "documentary" appears to be superfluous. Remember the "clear and precise" instructions rule. It should apply to the name of a DC as well.
We agree with Vincent and Mr. Bacon that "straight DC" is not "a well established banking term understood worldwide" as regarded by Mr. Pavel Andrle. Otherwise we should have used it very frequently.
Should a standby DC be also named straight DC? since there is also no nominated bank involved usually?
Similarly we have "straight bill of lading" and in fact we have more than 40 ways to call a bill of lading. But we do not like this idea. Such fancy terms would only lead to more confusions although confusions may bring us more business.
T. O.
(for those who know me, it means "Toronto Ontario". It seems that my destiny (domicile of my company) has been written in my name!)
[edited 8/6/02 3:00:02 AM]