ICC Digital Library Forum

Dear All,
we have received a request from one of our clients based on request from his business counterparty to add a claue called"Fresh Cut" to payment L/G text.
does anyone can explain the meaning and structure of such clause.

Dear Basel,

Could you advise the wording of the clause ?

Pradeep

Such clause do not exist in the normal vocabular of guarantees. If however it appears somewhere I would treat the guarantee with suspicion.
Roland

Pradeep
We really do not know the exact wording, our client simply mentioned he wants that clause to be added, we were suspecious about the clause so we want to know if anybody got a clue about it.

If you look at the US Treasury site page @:

http://www.treasuryscams.gov/instit/sta ... mebank.htm

you will see that ‘fresh-cut paper’ is a term found in ‘Prime Bank Instrument Fraud’.

Thanks Jeremy.

Basel, I would shy away from inserting any such clause based on heresay and land myself into unforeseen trouble and any consquent wrangle (legal or God forbid unwarranted illegal). What if the clause that you think is "fresh cut" is not "fresh cut" ? By the way, what are the underlying goods ? Is it agricultural stuff, by any chance ?

Regards,

Pradeep

Predeep,
we decided not to go ahead with the deal, it sounds suspecious.

thank you all for the help, really appreciated.

Basel