I have following question under transferable lc:
First beneficiary wants to extend expiry date under lc which was transferred to second beneficiary. The thing is that first beneficiary wants transferring bank, not issuing bank, to amend lc for second beneficiary. New expiry date under transferable lc falls on expiry date under lc from issuing bank. The question is can transferring bank issue amendment with new expiry date to second beneficiary without amendment from issuing bank taking into account that new expiry date will not exceed expiry date of initial lc? Or it's necessary that such amendment must be issued by issuing bank only?
Thanks in advance
I think route should be followed as L/C opening process. Amendment will be done by issuing bank.
yes second issuing bank can extend the L/C
The first beneficiary has the right when transferring the LC to make the second beneficiary's expiry date prior to the expiry date of the original LC. As long as the first beneficiary does not want to extend the expiry date past the expiry of the original expiry date from the issuing bank then the first beneficiary would have the transferring bank issue the extension to the second beneficiary. You would only have to amend the LC with the issuing bank if the extension request from the second beneficiary is past the original expiry date. If this is the case then the issuing bank would have to amend the LC and then the transferring bank could then issue the extension to the second beneficiary.
Amy Pugh Parris
Leapfrog Document Services, Inc.
Thank you very much for your complete and clear reply