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MORE THAN ONE BENE

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Wed, 09/08/2010 - 08:11
Gayathri srinivasan
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HI

 

Please clarify whether we can issue lc having more than one bene name

for eg 

IN FAVOUR OF BENEFICIARY: ABC LTD OR XYZ LTD

(COLLECTIVELY OR INDIVIDUALLY, THE ‘BENEFICIARY’)

 

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Wed, 09/08/2010 - 10:28
#1
LB
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more than one beneficiary

who's gonna issue the documents, mainly an invoice? 1st or 2nd beneficiary? I would not deal with this kind of LC.

maybe "third party documents" concept would be more appropriate.

Though UCP article 14 K already permits that the shipper or consignor of the goods indicated on any document need not be the bnf of the credit, many banks still insist  invoice to be issued by BNF only, as well as drafts.

 

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Wed, 09/08/2010 - 10:39
#2
LB
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more than one beneficiary

 I am thinking further.. suppose both 2 of the BNFs presented correct documents under LC separately but at the same time for the whole LC amount each. Who should you pay? 1st or 2nd? 

of course you may impose  limitations by LC wording itself, but you will involve to many problems ... advising, amendments, documents checking, etc.

So I would never issue this kind of LC. 

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