interpretation of UCP 600 article 14. The credit clearly stated that it expired at the counters of the negotiating bank and that the documents were to be sent to the head office of Global Bank. The credit did not contain any indication that presentation at the counters of Global Bank’s head office was for administrative purposes only, and that effective presentation to the issuing bank would only be considered when the issuing bank had received the required documents. UCP 600 article 6 states
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Essay Answer Guide on Strict Compliance (Qn 3 2009 (B)) ‘The strict compliance rule in relation to letters of credit does not require exact literal compliance in all circumstances and as regards all documents. The bankers is, therefore, required to exercise judgment whether the requirements has been fulfilled.’ Discuss. The use of letter of credit is the most common way of financing in an international sales agreement. Donaldson LJ in The Bhoja Trader had even seen it as “the lifeblood of
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the establishment of the principles to be considered in drafting URR 525. From July 1, 1996 issuing banks were faced with the decision as to whether their reimbursement authorizations should be made subject to URR 525 or UCP 500 article 19 (currently article 13 in UCP-600). To encourage usage of the URR and reduce the possibility of any ambiguity as to the applicable rules, SWIFT modified their handbook to reflect that the issuance of an MT740 (Authorization to Reimburse) would automatically apply
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training courses/workshops at BIBM / Bangladesh Bank Training Academy. The following are the proposed training courses & workshops for the year 2009: Workshops on: Basel-II/ Customer Service Banking Laws & regulations / Leadership & Team Building / UCP-600 Islami Banking / Anti-Money Laundering / Investment Risk grading / Investment Risks Management & Documentation / ALM / IC& C / Uniform Financial Rating System.Training course on: Training course on: Retail & SME Banking / Application of Technology
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(Assessment Criteria 3.2: Interpret the types of Letter of Credit (L/C). 3.3 Explain the role of Swift code in international transactions in the chosen Organization. (Assessment Criteria3.3: Role of swift code). 3.4 What is the role of UCP 600 with respect to
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obligation is defined by the terms of the credit alone, and the sale contract is irrelevant. The defensive of the buyer arising out of the sale contract do not concern the bank and in no way affect its liability.[3] Article 4(a) UCP states this principle clearly. Article 5 the UCP further states that banks deal with documents only, they are not concerned with the goods (facts). Accordingly, if the documents tendered by the beneficiary, or his or her agent, appear to be in order, then in general the bank
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establishing import letters of credit through its main bankers, Global Bank, Pune Branch. M/S Auto India approached Global Bank, Pune for opening of import letter of credit as per UCP ICC 600 for USD 100,000, on sight basis, in favour of General Motors, Detroit. Type of credit - Irrevocable negotiable Application - UCP ICC 600 Applicant - M/S Auto India, Pune, India Beneficiary - M/S General Motors, Detroit, USA. Issuing Bank - Global Bank, Pune, India Advising Bank - The American Bank, New York Negotiating
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Sample Final: International Payments I, MCQ 1, A shipping document indicating the details of the shipment and delivery of the goods and their ownership is a A, B/L (True: This is the most important transport document) B, Sight draft (False: This is a type of B/E) C, Time draft (False: This is a type of B/E) D, L/C (False: this is a method of payment) 2, A written statement by the exporter ordering the importer to pay a specific amount of money upon presentation to drawee to whom it is addressed
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meaning & types. • Role and responsibilities of the parties involved. • Import Procedure/The process involved in a letter of credit cycle. • Documents used in international trade. • How to examine documents? • Incoterms -2010 • UCPDC-600 • ISBP-681 • Export Procedure • Financing of Export.: Pre-shipment & Post Shipment finance • Export Incentives • Dealing with Discrepancies • Options Available to the Exporter When Documents are
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------------------------------------------------- Role: Issuing Lawyer ------------------------------------------------- ------------------------------------------------- What law governs? UCP No. 600 ------------------------------------------------- UCC 5-116 (c) ------------------------------------------------- ------------------------------------------------- UCP: does not have to be identical but must not conflict ------------------------------------------------- Rational Link
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