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non-nominated bank makes the transfer as instructed

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Sun, 02/05/2012 - 03:07
guoking
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Dear experts

If a transferrable credit 41 A stating credit is available with issuing bank by payment . L/C 47A specifying the advising bank is entitled to make the transfer.

Can the L/C be transferred by the Advising Bank despite it's not the nominated bank??

Or must the L/C be amended to Advising Bank as the nominated bank???

What's would be the consequences if Advising Bank transfers the L/C despite it's not the nominated bank but in anyway followed the 47A specicial condition as allowed by issuing bank??

Thanks for your comments

 

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Sun, 02/05/2012 - 03:35
#1
pan
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art 38

HI Friend,

As per art. 38 b, only issuing bank or a nominated bank could transfer a L/C. So instead of issue a l/c valid for payment issuing ank has to issue a l/c by negotiation with any bank or restricted to advising bank. Please let me know the place of expiry of this l/c at issuing bank's counter or in beneiciary's country?

Ciao

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Sun, 02/05/2012 - 04:50
#2
guoking
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Dear Pan L/c 31D: date and

Dear Pan

L/c 31D: date and place of expiry : 120330  France (i.e. the place of the Issuing Bank)

Thanks

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Sun, 02/05/2012 - 11:09
#3
pan
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pseudo transferable credit

Hi Friend,

IMHO, documentary credit must be amended in order to let the advising bank to transfer it. However it will depends on the capacity and expertise of said advising bank to effect transfer but in the meantime to inform beneficiary about risks and stating that all is made without any engagement of the advising bank. Some actions in documentary credits are outside the  UCP.

Other comments appreciated

Ciao

 

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