Can Bank issue a revocable L/C under UCP 600 ?
Shahed
Revocable L/C
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TanKokBoon
- Posts: 3
- Joined: Fri Apr 05, 2019 5:28 pm
Revocable L/C
No , UCP 600 does not cover revocable LC .
Revocable L/C
While UCP600 does not recognise a 'revocable' credit that is not any barrier to a bank including terms in a credit, that is stated to be subject to UCP600, that achieve the same result.
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KimChristensen
- Posts: 404
- Joined: Fri Apr 05, 2019 5:21 pm
Revocable L/C
Dear Shaheed,
I agree with Jeremy – but would like to add the following:
The UCP 600 does not cover revocable LCs as was the case in UCP 500. Therefore it is not sufficient just to state in the LC that it is revocable. The issuing bank must clearly define in the LC what is meant by that – e.g. when and how it can be revoked.
My best guess would be that a bank that would want to issue a revocable LC would do so subject to UCP 500.
Best regards
Kim
I agree with Jeremy – but would like to add the following:
The UCP 600 does not cover revocable LCs as was the case in UCP 500. Therefore it is not sufficient just to state in the LC that it is revocable. The issuing bank must clearly define in the LC what is meant by that – e.g. when and how it can be revoked.
My best guess would be that a bank that would want to issue a revocable LC would do so subject to UCP 500.
Best regards
Kim