ICC Digital Library Forum

Beneficiary has decided to submit its Extend or Pay request to the issuing bank under a SBLC subject to ISP98.

Does they need to mention specific date up to which the issuing bank will extend the SBLC, or they can simply say - Please extend your SBLC by way of an amendment or pay us at ....

Regards,

Shahed

ISP98 Rule 3.09 treats extend or pay demands, first and foremost, as payment demands that must be examined as such under the rules on preclusion. Accordingly, the issuer should formally refuse the demand on any available basis unless it timely issues an amendment extending the expiry date after receiving the applicant's consent.

If the beneficiary wants to give the issuer additional time or wants an extension with any particular term, it should make that very clear in its "extend or pay" demand.

Regards, Jim Barnes