we opened a Transferable L/C on DP basis. but first bene want to do amend to give clause that second bene get payment on sight basis. as a issuing bank how can i amend the lc or not. pls. help
any amendment raised by the beneficiary (first bene) to the lc should be done with the consent of the applicant.
in this case what is the intention of the first bene is it that he wants to give financing to the second bene. if so who is to bear the cost of finance and further details related to that.
would need more clarity on you question is the first bene's amendment request to the issuing bank or the transfering bank
and the amendment is to be done on the master lc or the transfered lc?
i guess suchitra has put it in very well. if it pertains to the issued lc, then yes you must consult the applicant too. that is what irrrevocability is all about.
and am supposing you arent talking about the transferred lc. why would the beneficiary come to the issuing bank to request for a transfer of the lc, unless ofcourse you are in the same country.
Good explaination you are in usa right.