Back dated Standby L/C

Shahed · Post by **Shahed** » Fri Oct 16, 2015 1:00 am

Some time banks are requested to issue a standby L/C with current date as a date of issuance but becomes effective in the past. Example, issue date is Oct 16, 2015 but in the body it states this standby L/C becomes effective from 16 Sept 2015.

Is there any problem to issue such back dated L/C?

Regards,

Shahed
Toronto

asamaha · Post by **asamaha** » Wed Oct 28, 2015 12:00 am

I don't see the purpose of pushing back the effectiveness date of a standby, unless if the intention of the issuer is to accept documents dated prior to SB issue date, like for example an evidence of default issued before L/C issuance

Regards
Antoine Samaha