warranty bond

WeitzmanZeev · Post by **WeitzmanZeev** » Tue Jan 06, 2015 12:00 am

a letter of credit requests a warranty bond to be presented as a document, among other documents, indicating only the amount of warranty to be issued. upon presentation of documents at the counters of the issuing bank it was noted that the warranty bond presented already expired (issued for only 2 weeks). do you consider it as discrepancy ?

JudithAutié · Post by **JudithAutié** » Thu Jan 08, 2015 12:00 am

I would not accept that warranty bond, basing my argument on art.14f. Although the wording of the bond was not given in the L/C terms (once again a poorly opened credit), an expired warranty bond does not, in my mind, "appear to fulfill the function of the required document". However you would have to read the bond's wording. Suppose the bond just guaranteed loading the goods on board and you had an "on board" B/L dated within the bond's validity?
When will banks learn that precision on opening a credit will avoid misuse or misunderstandings ?

WeitzmanZeev · Post by **WeitzmanZeev** » Fri Jan 09, 2015 12:00 am

hi judith,
thanks for your reply, i agree with your opinion and comments.....