ICC Digital Library Forum

An issuing bank issued a transferrable credit. Documents presented with commercial invoice showing a different name (i.e. not in the name of the beneficiary). Should this be treated as a discrepancy considering the following factor:
-UCP has no requirement that the transferring bank MUST advise the issuing in case of transfer.
In this case, issuing bank has no idea of whether this LC has been transferred or not. Upon receipt of documents showing beneficiary's name differs from the LC, can the issuing bank assumes that the LC has been transferred to the beneficairy that appears in the invoice hence it is not a discrepancy or this should be treated as a discrepancy. because if the LC has never been transferred, as per UCP art 18, comm'l invoice must be issued by the beneficairy.

David

David,
When a bank issues a transferable credit it must be prepared to receive documents for less than the credit amount, especially if there is no substitution. This is certainly not a discrepancy, as you rightly pointed out there is no requirement for the transferring bank to inform the I/B of any transfers (unless specifically stipulated in the credit). If the issuing bank has any doubt it can always seek clarification from the transferring bank. Regards, Khalid