Should the presentation be deemed to be a notification

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Reference no: EM132590176 , Length: 2 pages

Case Study

A bank has made the following query regarding practical application of UCP 600 sub-article 10 (c).

On December 19, 2019 the issuing bank issued an amendment to the credit through the advising bank which is also the nominated bank. As per MT 730 of the nominated bank, the amendment was advised to the beneficiary on December 23, 2019. On January 07, 2020 the nominated bank took up a presentation and claimed reimbursement under the credit. The presentation was made after the amendment date, but it did not comply with the amended credit.

At the same time the beneficiary did not communicate his acceptance or rejection of the amendment. The nominated bank was only informed that the beneficiary accepted the amendment on January 21, 2020, without specifying any details.

You are required to provide an opinion on the following:

Q1. If a presentation is made after the amendment date and complies with the original credit terms (not taking into account the amendment issued), should the presentation be deemed to be a notification of rejection of the amendment by the beneficiary, in the absence of another instruction to this effect from the beneficiary?

Q2. Should this presentation be honoured as complying?

Reference no: EM132590176

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