Correct Addresses of the Beneficiary and the Applicant
When the addresses of the beneficiary and the applicant appear in any stipulated document, they need not be the same as those stated in...
Means of Conveyance and Mode of Transport
Modes of Transport is a term used to distinguish substantially different ways to perform transport.
The most frequently used modes of transport in international trade...
Partial Acceptance of Amendments
According to the letter of credit rules, the beneficiary should communicate its acceptance of the amendment to the bank that advised such amendment.
The beneficiary...
Effectiveness Date of an Amendment
Letter of credit is an irrevocable and conditional payment obligation of the issuing bank.
As the letter of credit is irrevocable, its terms and conditions...
Clean on Board Notation on Bills of Lading
What is clean on board?
A clean transport document or a “clean on board” clause relates to the condition of the goods and/or packaging.
If, on...
Complying Presentation
What is a Complying Presentation?
If issuing bank determines that the presentation is complying then the issuing bank must honor. If credit is available by...
Reimbursement and Reimbursing Bank
What Does Reimbursement Mean?
Reimbursement is defined as a compensation paid to someone for an expense.
In order to be reimbursed by another person or organisation,...
What Does “With Recourse” and “Without Recourse” Mean in International Finance?
Recourse means the right to claim a refund of an amount paid in connection with the negotiation of a documentary credit or the discounting...
What happens if court stops payment of an irrevocable, confirmed letter of credit?
In many countries, applicants able to prevent payments under letters of credit by obtaining court orders on the grounds that low quality goods shipment...
How to Cancel a Letter of Credit?
According to the letter of credit rules, a letter of credit should be issued in an irrevocable form, as a result it cannot be...