Swift is a provider of secure message platform for financial institutions mainly for banks.
Swift messages are being sent and received by banks in encrypted forms. As a result swift messages are accepted as a valid and reliable way of communication between banks.
For example, an issuing bank sends a swift message to an advising bank in order to inform issuance of a documentary credit. Similarly the advising bank sends its acknowledgement via a swift message.
Swift messages play a key role not only in letters of credit but also other payment methods in international trade such as cash in advance payment, documentary collections, open accounts and bank payment obligations.
What is MT 767 Guarantee / Standby Letter of Credit Amendment?
MT 767 is a swift message type that is used by issuing banks when amending or requesting the amendment of the bank guarantee or standby letter of credit.
Issuing banks send terms and conditions of the bank guarantee amendment or a standby letter of credit amendment with a MT 767 Guarantee / Standby Letter of Credit Amendment swift message type.
MT 767 Guarantee / Standby Letter of Credit Amendment
|M||27||Sequence of Total|
|M||20||Transaction Reference Number|
|O||26E||Number of Amendment|
|M||31C||Date of Issue or Request to Issue|
|O||72||Sender to Receiver Information|
|O : Optinal M : Mandatory|
MT 767 Guarantee / Standby Letter of Credit Amendment Rules:
- This message is sent by a bank which has issued a guarantee to the bank to which the guarantee was issued. It may also be sent by a bank which has requested the issuance of a guarantee to the bank to which the request for a guarantee was sent.
- It is used to amend or request the amendment of the guarantee.
- This message may also be used for Standby Letters of Credit.
- The guarantee amendment is to be considered as part of the guarantee.
- The terms and conditions of the original guarantee or instruction(s) not mentioned in the message remain the same.
- The cancellation of a guarantee, ie, MT 760, takes the form of an amendment. The MT 767 must therefore be used.
- Since a SWIFT message is restricted to the maximum input message length, more than one MT 767 may need be required to accommodate all the details of the guarantee amendment.
What Does Current Bank Guarantee Rules (URDG 758) or Standby Letter of Credit Rules (ISP 98) Say About Amendment of a Bank Guarantee or a Standby Letter of Credit?
- URDG 758 states that an amendment issued without the consent of the beneficiary is not binding on the beneficiary except where the guarantee otherwise provides.
- As per latest demand guarantee rules the guarantor is irrevocably bound by an amendment as of the time it issues the amendment and unless until the beneficiary rejects the amendment.
- Uniform rules on demand guarantees signifies that an amendment of the guarantee may be rejected by the beneficiary until the time it notifies its acceptance of the amendment or makes a presentation that complies only with the guarantee as amended.
- Partial acceptance of an amendment is not allowed as per URDG 758 rules and will be deemed to be notification of rejection of the amendment.
- A provision in an amendment to the effect that the amendment shall take effect unless rejected within a certain time shall be disregarded.
- According to ISP 98 rules an amendment of a standby letter of credit is binding when issued, for this reason it is enforceable against an issuer whether or not the applicant authorized its issuance, the issuer received a fee, or the beneficiary received or relied on the the amendment.