07 Compendium of cases VI - Final Revision v3(1).docx -...

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LETTERS OF CREDIT – FINAL CASECase: Derivados AgroquimicosFollowing you will find a Swift message and the documents related to the Letter of Credit of Derivados Agroquimicos, a Peruvian exporter manufacturer of chemical products derivatives from copper, who serves different markets, among them the European Market.In this occasion you must answer the questions shown below:1. Questionsa.¿When was the LC issued?_____________________________:31C:070712 Julio 12th, 2007b.¿What is the meaning of the content of field 40?______ :4OA:IRREVOCABLE TRANSFERABLE : it cannot be cancelled without concerned of both parties. It can be transferred to another beneficiary.c.¿Who is the buyer?________________________50:AGRO INDUSTRIALE d.¿Is the LC notified or confirmed?____________________________49: it is notifiede.¿When will the payment be effected to the seller?____42P:AT 90 DAYS AFTER B/L DATE-It will be November 1st, 2007 f.¿What is the role of the bank shown in field 53?53 REIMBURSEMENT BANK: They will make the paymentg.¿Who will pay the reimbursement and confirmation expenses?71B: derivados Agroquimicos will pay for the reinburment expenses.There is no confirmationh.¿What is the meaning of field 41 being restricted to Scotiabank Peru?41: Scotiabank is the only bank that can receive the payment. It will be available after 90 from the B/L2. Liquidating commissionsAccording to the terms and conditions established in the Swift message, calculate the USUAL COMMISSIONS that DERIVADOS AGROQUÍMICOS will have to pay. For this case review the Chart that appears in the last 2 pages for Banks A and B and prepare a comparison.3. Documentary RevisionOn 15/07/2007, the applicant requested the following amendment:a. On field 32B where it reads: USD68,736.00SHOULD READ: USD74,464.00b. On field 45 where it reads: 24 MT OF TETRACUPRIC...SHOULD READ: 26 MT OF TETRACUPRIC...On August 18th, 2007 the documents were presented by the beneficiary in the following conditions:- Documents duly sealed and signed.- Documents delivered in the required number of originals and copies.Compendium of Cases VII – Page 1 of 13

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