Understanding Letter of Credit : Learner's Guide to Letter of Credit by Nisha S Koshal

Author:Nisha S Koshal
Language: eng
Format: azw3
Publisher: Notion Press, Inc.
Published: 2017-06-15T04:00:00+00:00

Chapter 15

UCP 600 Article 11 Tele Transmitted and Pre-Advised Credits and Amendments Explanation

An authenticated tele transmission of a credit or amendment will be considered as the operative credit or amendment and any mail confirmation sent thereafter will be disregarded. The same may even be stated in the letter of credit that this is the operative instrument and no mail confirmation shall follow. If the tele transmitted message states that full details are to follow, or states that the mail confirmation is to be considered as the operative credit or amendment then the tele transmitted message will not be considered as the operative credit or amendment. The issuing bank must then issue the operative credit or amendment, without delay, that is consistent with the tele transmission.

An issuing bank should not issue a pre-advice of a credit or amendment if it is not sure of issuing the credit or amendment in future. Although issuing of a pre-advice is almost a declined practice, the issuing bank is irrevocably bound to issue the credit or amendment if it has already issued the pre-advice. The operative credit or amendment should mirror the details as given in the pre-advice of a credit or amendment. An issuing bank cannot cancel a credit or amendment if it has already sent a pre-advice.

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