ICC Digital Library Forum

Hi ,

We have recd a presentation under a LC advised by us details as under:

90% of Invoice value payable at sight against shipping document.
10% of Invoice value payable upon a certificate issued by the applicant stating that the material is acceptable.

We have already received shipping docs and have made payment against 90 % of the Invoice value.
We have today received Invoice and Applicants certificate as per LC for the balance 10 % , the LC expiry date was 21-Oct-07. Please confirm my understanding.
1. Is it safe to assume that the expiry date is for presentation of docs pertaining to 90 % of the transaction only.
2. If Yes for point 1 when does the liability of issuing bank cease for the 10 % of LC amount.
3.The closest I could get was opinon R526 / TA553rev , which is a bit different from this case. Is there any other ICC Opinion pertinent to this case.

Thanks and regards
Srinivas

I would have to see clear evidence of contrary practice before I could be convinced that the 10% obligation survived expiry and could be triggered by presentation of a document after expiry. Regards, Jim Barnes

The LC having expired, the issuing bank has no obligation to honor a presentation made after the expiry, even if including applicant's authorization to release payment.
Rgds
Antoine Samaha