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Tenor in the Letter of credit

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Tue, 08/31/2010 - 08:02
Palani
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The Letter of credit states the tenor as 90 days after Bill of lading, Is it okie to call marine ocean bill of lading

and also an air way bill.

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Tue, 08/31/2010 - 09:30
#1
Abrar
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Tenor

I'm not too sure what the question is being asked.

If the LC states tenor as 90 days after Bill of lading and requires presentation of Bills of lading, there is no confusion. If the LC is however calling for AWB, then reference to Bill of lading under the tenor would need to be replaced with Air waybills.

A simpler solution would be to state tenor as "90 days after date of transport document".

For the purpose of the LC, there is no difference between "marine ocean bill of lading" and Bill of lading".

 

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Wed, 09/01/2010 - 06:22
#2
Palani
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tenor

yes i am agreed with your statement ,but if Letter of credit stated tenor as 90 days after bill of lading and in document required given as to present full set b/l and /or Air way bill.

Kindly advice me , will that been an inconsistent

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Wed, 09/01/2010 - 07:52
#3
Abrar
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Tenor

The ambiguity over the tenor would not necessarily have a bearing on whether the documents comply, but simply on the payment terms. Having issued the LC,  the issuing bank would be bound by the only possible reasonable interpretation that can be made (in the absence of clarification) where shipment is made by air, and an AWB is presented;  that is, to calculate the 90 days with reference to the AWB date.

If you are the beneficiary, I would proceed in presenting documents on this understanding.

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